To say a property that sells for $385k is worth $450k is plain wrong. It is worth $385k
If you follow that logic, you could say its worth $600k as well. At some time in the future.
The value (or lack of) negative cashflow in a falling market is another debate altogether.
If you follow that logic, you could say its worth $600k as well. At some time in the future.
The value (or lack of) negative cashflow in a falling market is another debate altogether.
As for buying property valued at 385k when it was worth 450k....there is still
a large negative cash flow...in the order of $160-$200 pw. The question is whether the opportunity cost of putting your money vs somewhere else.
Cheers
Sash