Hi All,
I was watching some Steve McNight videos the other day and he was running some numbers around rental increases. The idea was that any increase in rental yield would also drive the value of the property up.
The idea being if that you had two identical properties with one renting for 500pw and the other renting for 525pw, that the latter would be the more attractive purchase and as such would be worth more.
Is this actually the case? Seems to make sense to me...but the real question is:
Does a valuer actually take rental return into account when performing a property valuation?
I was watching some Steve McNight videos the other day and he was running some numbers around rental increases. The idea was that any increase in rental yield would also drive the value of the property up.
The idea being if that you had two identical properties with one renting for 500pw and the other renting for 525pw, that the latter would be the more attractive purchase and as such would be worth more.
Is this actually the case? Seems to make sense to me...but the real question is:
Does a valuer actually take rental return into account when performing a property valuation?