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Does site (Govt Valuation) play a part purchase price

Discussion in 'General Property Chat' started by dismith, 22nd Aug, 2015.

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  1. dismith

    dismith Member

    Joined:
    22nd Jun, 2015
    Posts:
    10
    Location:
    Qld
    Hi all,
    During research I started wondering if government valuations play a part in your decisions on the purchase price of a property.

    I don't fully understand how the valuations are done ( OK, I understand the basics so no need to explain but seriously sometimes I just don't get it).

    Do you place importance on it to utilise it as a bargaining tool or influence your decisions.

    Cheers
    Di
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Location:
    NSW
  3. dismith

    dismith Member

    Joined:
    22nd Jun, 2015
    Posts:
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    Location:
    Qld
    No, no different here in Qld, in my opinion. I am just curious what others think.
     
  4. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

    Joined:
    9th Aug, 2015
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    520
    Location:
    Loganholme, Brisbane
    I avoid large sites with higher values than average for the area, lets you buy more property before hitting land tax, what tenant wants to look after a larger than usual block?

    I bought a place last year, on one side of the main road 700 m2 block site value 140k, other side closer to the water site value 185k same size block but only about 200 meters away from each other divided by a main road, same potential growth and rental yield IMO.

    Of course if there is potential for granny flat or duplex or subdivision or development then that is a different story.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
    Sydney or NSW or Australia
    SVO valuations are only a ratings tool. It plays no part in my investment decision.