Comments on: How To Value Real Estate http://www.moneysmartsblog.com/how-to-value-real-estate/ Investing and Personal Finance Fri, 10 Feb 2012 14:34:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mike http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-28196 Mike Wed, 12 Aug 2009 22:59:29 +0000 http://www.moneysmartsblog.com/?p=4376#comment-28196 MIB5 - you can find out a number of ways. I used to have access to a MLS login which was extremely cool. Other methods are to sign on with an agent and ask them to look up sale prices. I've also just phoned the selling agent after the sale - they'll generally tell you although you might just get a range. MIB5 – you can find out a number of ways. I used to have access to a MLS login which was extremely cool.
Other methods are to sign on with an agent and ask them to look up sale prices. I’ve also just phoned the selling agent after the sale – they’ll generally tell you although you might just get a range.

]]> By: MIB5 http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-28194 MIB5 Wed, 12 Aug 2009 22:51:25 +0000 http://www.moneysmartsblog.com/?p=4376#comment-28194 Hey just curious, how were you able to confirm the sale price. I thought a Realtor could only access that info. TIA, MIB5 Hey just curious, how were you able to confirm the sale price. I thought a Realtor could only access that info. TIA, MIB5

]]> By: Thicken My Wallet » Blog Archive » Are you as house poor as you think? http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-28059 Thicken My Wallet » Blog Archive » Are you as house poor as you think? Wed, 12 Aug 2009 08:56:30 +0000 http://www.moneysmartsblog.com/?p=4376#comment-28059 [...] those who bought homes during the boom and received mortgages based on boom time valuations (and real estate valuation is more art than science). But for those who bought before the boom, and assuming they did not [...] [...] those who bought homes during the boom and received mortgages based on boom time valuations (and real estate valuation is more art than science). But for those who bought before the boom, and assuming they did not [...]

]]> By: qmanrei http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-27746 qmanrei Sun, 09 Aug 2009 01:10:19 +0000 http://www.moneysmartsblog.com/?p=4376#comment-27746 Real estate value is what someone is willing to pay for a property and what someone else is ready to let it go at. If you are looking at factors that drive up or down the value of real estate then that is something different. You need to look away from the house itself and look at the economic fundementals of the area, diversity of jobs, in-migration, wages above the provincial average and so on. If you are buying real estate as an investment Cap Rate is just one anayltic tool. Cash flow is extremely important in all our deals, although we use a number of different strategies. Mortgage paydown and appreciation are bonuses, albeit well paying bonuses. As well as owning a physical asset provides inflationary protection, and tax incentives. Risk is perceptional as well as situational. We have a number of properties that we manage and control. I would say there is less risk to us than if we were to use another investment tool. With MERs and CEO perks, and the like. I enjoy the blog :) Real estate value is what someone is willing to pay for a property and what someone else is ready to let it go at.

If you are looking at factors that drive up or down the value of real estate then that is something different. You need to look away from the house itself and look at the economic fundementals of the area, diversity of jobs, in-migration, wages above the provincial average and so on.

If you are buying real estate as an investment Cap Rate is just one anayltic tool. Cash flow is extremely important in all our deals, although we use a number of different strategies. Mortgage paydown and appreciation are bonuses, albeit well paying bonuses. As well as owning a physical asset provides inflationary protection, and tax incentives.

Risk is perceptional as well as situational. We have a number of properties that we manage and control. I would say there is less risk to us than if we were to use another investment tool. With MERs and CEO perks, and the like.

I enjoy the blog :)

]]> By: Bud http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-27677 Bud Fri, 07 Aug 2009 21:12:27 +0000 http://www.moneysmartsblog.com/?p=4376#comment-27677 Certainly the value of the land is a major component of the value of the property. That is supported by the old saying,n "The three most important factors influencing the cost of real estate is LOCATION, LOCATION, and LOCATION. My parents bought a three bedroom bungalow in the Bayview York mills area of Toronto for $120, 000, lived in in it and enjioyed it for many years and solld it for $670,000. The buyer tore down the house and built a monster home on the 63 ft. lot. that created a million dollar value address. Wasn't it will Rogers who said, "Land is a great investment, they don't make it anymore". Think about how that relates to the limited supply of water front property close to urban districts, property that increases in value 8 to 10 times faster than land locked property be it residential or commercial. Really, beyon the cost of insurance premiums, who cares about the break down bvetween land and building, they become a packagewhen linked together and the packaged is va Certainly the value of the land is a major component of the value of the property. That is supported by the old saying,n “The three most important factors influencing the cost of real estate is LOCATION, LOCATION, and LOCATION. My parents bought a three bedroom bungalow in the Bayview York mills area of Toronto for $120, 000, lived in in it and enjioyed it for many years and solld it for $670,000. The buyer tore down the house and built a monster home on the 63 ft. lot. that created a million dollar value address. Wasn’t it will Rogers who said, “Land is a great investment, they don’t make it anymore”. Think about how that relates to the limited supply of water front property close to urban districts, property that increases in value 8 to 10 times faster than land locked property be it residential or commercial. Really, beyon the cost of insurance premiums, who cares about the break down bvetween land and building, they become a packagewhen linked together and the packaged is va

]]> By: Four Pillars http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-27659 Four Pillars Fri, 07 Aug 2009 17:53:34 +0000 http://www.moneysmartsblog.com/?p=4376#comment-27659 Seacloud - yes, that's a good point about the insurance replacement value. And don't forget - that's for a new house. If the house you bought is old it might only be worth half of the replacement cost or less. Seacloud – yes, that’s a good point about the insurance replacement value.

And don’t forget – that’s for a new house. If the house you bought is old it might only be worth half of the replacement cost or less.

]]> By: Seacloud http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-27658 Seacloud Fri, 07 Aug 2009 17:34:18 +0000 http://www.moneysmartsblog.com/?p=4376#comment-27658 While most of the comments ahead of me are about rental properties, I wanted to share with you my 'epiphany' moment where I realized the balance of land vs. house value. After we bought our first home we, of course, needed home-owners' insurance. Looking at the limit values on the insurance policy makes it pretty clear where the value of the house is relative to the price we paid for house and land (at least, in the eyes of the insurance companies). While most of the comments ahead of me are about rental properties, I wanted to share with you my ‘epiphany’ moment where I realized the balance of land vs. house value. After we bought our first home we, of course, needed home-owners’ insurance. Looking at the limit values on the insurance policy makes it pretty clear where the value of the house is relative to the price we paid for house and land (at least, in the eyes of the insurance companies).

]]> By: Bud http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-27643 Bud Fri, 07 Aug 2009 14:24:59 +0000 http://www.moneysmartsblog.com/?p=4376#comment-27643 Rental duplexes are one of the worlds best investments that will survive inflation or depression. During depressions some people still have jobs and want to own their house. What better house to have during a depression than one where some one else is supporting to the mortgage. The stock market is a crap shoot where money is lost if some foreign country incident emerges, or if there is a strong wind from the south or if the president of the U.S.A. gets the flu. Conversly, real estate fluctuates slowly from time to time but always moves up. My first home cost $10,000 and would now be $200,000. During dips in the housing market fewer new houses are built which supports rentals. Exceptionally double digit high rates of return are possible from good properties. Rental duplexes are one of the worlds best investments that will survive inflation or depression. During depressions some people still have jobs and want to own their house. What better house to have during a depression than one where some one else is supporting to the mortgage. The stock market is a crap shoot where money is lost if some foreign country incident emerges, or if there is a strong wind from the south or if the president of the U.S.A. gets the flu. Conversly, real estate fluctuates slowly from time to time but always moves up. My first home cost $10,000 and would now be $200,000. During dips in the housing market fewer new houses are built which supports rentals.
Exceptionally double digit high rates of return are possible from good properties.

]]> By: Roundup and Link Love: Shark Week 2009 Edition | The Wisdom Journal http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-27634 Roundup and Link Love: Shark Week 2009 Edition | The Wisdom Journal Fri, 07 Aug 2009 09:45:38 +0000 http://www.moneysmartsblog.com/?p=4376#comment-27634 [...] How to Value Real Estate [...] [...] How to Value Real Estate [...]

]]> By: Friday Links | The Canadian Finance Blog http://www.moneysmartsblog.com/how-to-value-real-estate/comment-page-1/#comment-27633 Friday Links | The Canadian Finance Blog Fri, 07 Aug 2009 09:06:04 +0000 http://www.moneysmartsblog.com/?p=4376#comment-27633 [...] Four Pillars looks at how to value real estate. [...] [...] Four Pillars looks at how to value real estate. [...]

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