Selecting properties below FMV



From: Vincent Harkins

Dear all,

Some posters to this forum talk about purchasing properties below FMV. How is this achieved ? and how do you ascertain the approximate rental value of properties for sale ?

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Reply: 1
From: Rixter ®

The common basic answer to your questions is RESEARCH RESEARCH & you guessed it more research.....after you have decided where & what type of IP you prefer to buy ie 3x2 house, villa etc you neeed to find what the going market value of such is and rental return .......once you know these figures its relatively simple to identify when a Ip becomes available if it is under the going market value or give you an idea of where to look when rearching try these. I find then invaluable

To identify market value.....
1. newspapers
2. Internet sites like and other agents sites.
3. local multilisted real estate magazines
4. chat with agents
5. VGO ,the valuer general office (in WA) or other state equivilents. This site is a can find a list of all the previous sale prices & addresses of similar types of IP you are looking for...cap growth rates , median prices, age of property , number of owners for a particular property and the sale price at each change of owner

To identify rental returns try....
1. the To-let section in Newspapers
2. Ring around several Property managers in the local area and chat with them( after all its there job &profession to know)
3. Internet sites ie and
4. Local Real estate websites in area.

I use all of the above

Hope this helps
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Reply: 1.1
From: Rasputin .

What is FMV , i guess MV is market value ....
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Reply: 1.1.1
From: Marina. L

You were so close Rasputin, so close..

But yet so far away.

The answer is..


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From: Rasputin .

yeah story of my life, so close and yet .....
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Reply: 2
From: Michael Yardney

To help you determine what you call Fair Market Value or more importantly to help you know when you have found a bargain, I suggest you initially focus your time and efforts to a narrow market area.
Then develop a “comfort zone” using as follows:-
1. Establish a Geographic Territory
Decide where your investment zone will be. Begin with an area which has a long history of high capital growth. Also look for areas which offer good rents, a low vacancy rates and a high desirability factor for people to live. And of course the area must that contains affordable properties.
2. Become an expert in that Territory
Learn all you can about your chosen territory : -Price ranges, Rental market data, Future road plans, Future developments in the planning stage, Local employment statistics, Employment trends and major impacts that may affect them, Local private & public schools – VERY IMPORTANT IN MELB, Public transportation routes, Local council town planning and zoning rules and regulations.
If I were you, starting to become an expert in my comfort zone, I would get to see as many properties as I could, fill out as many of these as I could until you know the area like the back of your hand.
I’d carefully analyse 100 properties before I would feel comfortable that I knew an area well.
3. Act on Opportunities
When you get the feel for your comfort zone, there will be a sudden shift of what you actually see. You will know when you have found a bargain, take advantage of the opportunity.
Have a great week... make it a great week!

Michael Yardney Metropole Properties
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Reply: 2.1
From: Anonymous


Do you think Locations in NSW such as Goulbourn, Scone & Singleton would suit this criteria.

People in the Chat Room are talking of doing great Wrap Deals in those locations.

However I am hesitant on areas that are declining in population along with employment and improvements. It seems opposite to what I want.

RE: Improving area with lots of people moving in.

If these locations keep having a reduced amount of people wanting to live there then certainly isn't the demand going to drop.

Then the prices drop as a factor of the increased supply of vacant homes.

Perhaps I am not quite with all the other peoples thoughts.

They say you can just rent them out if your Wrappee leaves. But would not there also be a lot of other vacant homes available.
Sort of like a rental auction going backwards.

Wonder what happened when gold towns turned into ghost towns.

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