Property Values

Discussion in 'Property Market Economics' started by MTR, 3rd Feb, 2019.

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  1. The Y-man

    The Y-man Moderator Staff Member

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    Used to see it a lot in retail. Not sure if it still happens but stores would have an arrangement with suppliers where they get invoiced a "full" amount - and they would show the customers "Look, see this is what we pay, and we only put 2% on top - we are giving you a crazy deal" (ever see "Cost + x%" in car dealer ads?).

    After they sell, they send a rebate request and the supplier gives a certian % (whatever the agreed markup was) back to them.

    It made for all sorts of interesting tax issues too (ethics and other legalities aside) where the original invoice happens in June and the rebate happens in July etc.

    The Y-man
     
    The Y-man, 7th Feb, 2019
    #101
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  2. kitdoctor

    kitdoctor Well-Known Member

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    @kierank don't worry the opportunity to buy MQR at a bargain price is coming. I'm in the cue waiting too.
     
    kitdoctor, 7th Feb, 2019
    #102
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  3. kierank

    kierank Well-Known Member

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    I assume you mean MQG, not MQR :D.

    At 5c, I am guessing MQR is at bargain basement pricing :p.
     
    kierank, 7th Feb, 2019
    #103
  4. kitdoctor

    kitdoctor Well-Known Member

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    I'm already getting excited and shaking!
     
    kitdoctor, 7th Feb, 2019
    #104
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  5. radioactive

    radioactive Well-Known Member

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    Yeah makes Sense!Junk Bond!
    Having said so,I am of the opinion that there is limited scope for low yield property to grow (Affordability/lending in post APRA era), but if it is a growing market then low yield property(generally low price point) has higher upside.
     
    radioactive, 18th Oct, 2019
    #105
  6. MWI

    MWI Well-Known Member

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    But you would assume land component is adjusted accordingly? Land tax is based on land value not property value.
     
    MWI, 18th Oct, 2019
    #106
  7. spoon

    spoon Well-Known Member

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    It's all psychology. You feel good if CG is there but bad if negative. Sometimes looking at valuation is worse than selling at a loss in a dropping market.
     
    spoon, 18th Oct, 2019
    #107
  8. MTR

    MTR Well-Known Member

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    Any other shares besides banks? I think Telstra??
     
    MTR, 18th Oct, 2019
    #108
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    There is a lag both ways on the impact of price movements on Land Tax, as properties are valued for land tax at 30 June but not levied until the following 31 December. Where the market has turned, more recent sales would indicate a different scenario but are irrelevant to the valuation date. Likewise, in NSW, the effect of the movement is cushioned by averaging 3 years values so there is not a large spike if there's boom or bust.
     
    Scott No Mates, 18th Oct, 2019
    #109
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