deltaberry I never assumed your wealth or investment activities and their scale unlike you have so ammusingly with me.
Perhaps the difference between you and me is that I use my real name on this forum, each of my posts has my signature and a reference to my website. Perhaps you would like to pull your head in a little and read up on me before you try and beat your chest because you have really bemused me with this post. From my own experience people who say cliche lines like
"I'm more involved in the multi-million dollar developments and land holdings haha" really dont do much at all.
Anyways your understanding is still flawed I am sorry. Market value is an estimate on price only particularly when it comes to property. Shares is so liquid that you can estimate with high probability the price of your shares at any given moment unlike your SPECIFIC property.
Therefore your view on market value is purely one based on an estimate of its value and what it should transact for i.e. based on market comparisons or its last known value if its been transacted recently. So in a falling market buyers adjust their price expectation and lower their offers from the market value of your property as determined by say a valuer. Hence why valuation reports have a rating on future value high risk etc because its a safegaurd to suggest that the property could sell for much less than "market value" given softness in the market. Your are treating "Market Value" and "Market Price" as one and the same they are NOT especially in inefficient markets such as property and particularly in a falling market. I repeat your share example is wrong because more times than not market price = market value with shares however this is not true in property.
By the way my reference to renovations wasnt because I do them. I was simply listing property investments that dont require a "hot" market. Perhaps you should breath in before typing ignorant comments such as
"little renovations you're talking about or that you do". I can name several commercial renovators that will squash your wealth and mine put together so please dont in a single swipe reduce all rennovators as
"little". (By the way - since I know your petty in regards to semantics, let me be cliear whether you named the actual rennovation
"little" or the people that do them
"little" is irrelevant, the tone in your statement was clear so save yourself from telling me I misread)
Then you go on to discount passive property investment as being irrelevant to a thread on property... sigh I wont even try and state how dumb that sounded. Especially when your an asset holder too and suspect receive passive income.
So next time Mr deltaJamesPacker just relax with belittling everyone around you because some might be larger than you think and either way without naming any names wealth is obviously not a marker for intelligence even
"little" rennovators can share information that I could use.
Lets call it a day shall we?
Hmm thanks for your essay response.
Anyway - you're qualifying your statement. The market price is the highest price for which I can sell at any given point in time. That's what market price is. You're qualifying it with 'notional' market price, which is basically another euphemism for 'intrinsic value'. They're two different things. Thus my arguments still hold.
Onto your second point, devleopment = a form of business involving value-add ,via other mechanisms from the industrial and construction sectors.
Contrary to your once again inaccurate belief, I actually understand this concept. Perhaps I'm not too familiar with the little renovations you're talking about or that you do - I'm more involved in the multi-million dollar developments and land holdings haha... but as usual, what have I got to prove on a forum with a stranger I don't know, except maybe to amuse myself and annoy a few fools who get all angry? Hmm... Anyway all I really wanted to say on this point was we're talking about passive real estate investment in this therad or at least I think most of us are. Do compare apples with apples. Talk about lmfao...