Investors prime real estate and the bambooandtimber altar of Australian property funds made simple I’ve made a really cool video foot for you today talking about valuations and more specifically timing of the market and also when you should be focusing your energy on doing valuations and when you should be focusing.
Your energy on acquiring new properties let me give you a very simplistic overview of the property market in terms of its cyclical nature so if you look at the property market over long period of time let’s say 10 years what we tend to find is a cyclical nature of the market well over 10 years for the touch houses in northern Sydney.
What is the role of valuation when it comes to selling process?
We’ve seen about 10 percent growth per year now in Melbourne out of 390 suburbs only half of them have doubled in the last 10 years the other one the other half hasn’t doubled so just because you’re in property investing Employment Guarantee thing but if you pick the best areas in in Melbourne.
I think those bambooandtimber top 45 suburbs always do a 10 to 12 percent growth you’ll get your 10% growth however the market itself goes up and down those are the reactional low and an emotional high now if you look at that even further if you look at auction clearance rates.
Which is probably the best way to measure consumer sentiment in the market and in mobile in Sydney especially majority of the blue-chip properties are sold at auction and really if you look at auction clean rate it’s simply a percentage of properties.
That have been sold at an auction that particular weekend so when people say there’s a 90 percent oxygen clear rate that weekend it simply means ninety percent of properties were sold and temperature will past in now that figure doesn’t capture.
The 10 percent past 10 that would then resold or unsold on the following day or the following week however it is still a good indicator of whether markets at the highest.
That I’ve seen and this is let’s say this is a 100 bambooandtimber percent oxygen content rates hich is virtually everybody gets old this is 75 percent 50% 25% and then zero which would be a disaster now historically and I’ve been watching the market now very closely for over 20 years