Expert Bust #18 - No benefit buying under median

Discussion in 'Investment Strategy' started by datageek, 12th Apr, 2021.

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  1. datageek

    datageek Well-Known Member

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    18th Apr, 2017
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    Some experts advise investors buy under median value, so there'll be more properties “dragging up” your property’s value. But it doesn’t matter what the median for the suburb is, valuers will compare a property to: nearby properties; that have similar features; that sold recently.

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    It is impossible for the median to “drag” values up.

    It's bad advice because investors could see a property below the median and start thinking its good value for money, when it could be the complete opposite.
     
    datageek, 12th Apr, 2021
    #1
    Nando Lee and Jaacksn like this.
  2. craigc

    craigc Well-Known Member

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    Seems fair enough @datageek but depends on how well valuer does their research.
    ie If they just pick recent sales and don’t look or compare closely it could slip through.

    Eg I had a lenders valuer come up with a rubbish value and they had included a sale as a comp from a completely different suburb 10km away!
    This was for a Melbourne suburbia val.
     
    craigc, 15th Apr, 2021
    #2
    Rekke likes this.
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