Hi All,
I have a duplex on the market. Did a reno with new kitchen and bathrooms retiled and new vanities etc.
My first and only offer is $490,000. I had a rental appraisal done by 2 agents recently. Both said $580-$600 per week.
What are reasons that sale price and rental return can be out of sync, or are they?
I once read that the rental return on a residential property is a good indication of the value of the property give or take.
I think this mostly applies to properties in the lower end of the market.
Only with properties that have not been set up or altered for extra rental income.
I found this pretty much to be a good guide over the years with the properties I have owned. Also been accurate with properties that I have looked at purchasing.
The give or take , at a guess would be about 10% either way.
Rental returns being mostly between 5-6.5 %. Although 6.5% not common.
Cheers and Happy New Year
I have a duplex on the market. Did a reno with new kitchen and bathrooms retiled and new vanities etc.
My first and only offer is $490,000. I had a rental appraisal done by 2 agents recently. Both said $580-$600 per week.
What are reasons that sale price and rental return can be out of sync, or are they?
I once read that the rental return on a residential property is a good indication of the value of the property give or take.
I think this mostly applies to properties in the lower end of the market.
Only with properties that have not been set up or altered for extra rental income.
I found this pretty much to be a good guide over the years with the properties I have owned. Also been accurate with properties that I have looked at purchasing.
The give or take , at a guess would be about 10% either way.
Rental returns being mostly between 5-6.5 %. Although 6.5% not common.
Cheers and Happy New Year