May I be audacious enough to suggest a refinement of the ’11 second rule’?
As it takes longer, I’ll call it the 22 second rule.
Here’s the formula:
Property rent = X
Add or deduct the following to X:
If built before 1985 -$10
If built after 1985 +$10If timber/asbestos -$10
If brick/tile +10If <1km to town or beach +$10
If >1km to town or beach -$10If land component is small -$10
If land component is large +$10If there is a body corp -$5
If there is no body corp +$5If there is town sewage +$5
If septic tank only -$5Then multiply result by 500 to get an appropriate sale price that you’re willing to pay.
The aim is to factor in things like location & maintenance, so it’s a little more refined than the 11 sec solution.
Comments anyone?
Peter
[
] [] That’s fantastic! Well done.Don’t know about the timber vs brick one though – being a Qlder, the timber houses are the fave. Is this based on expected maintenance costs??
Cheers,
MelPeter,
This is Cool! [8D]
Well done!
Amit
If you can do all that in your head in 22 seconds your doing well…
I would have trouble remembering all the options unless I had it written down.Im just starting out, so I think i will stick to the 11 second rule till I have more experiences as you obviously have.
I suppose this can be an add on to the Due Diligence checklist, after to narrow down the list of prospects….
Regards,
Arty.
[]Yep, everyone’s right – it’s more like 110 seconds rather than 22 seconds! But still quick enough to do while in the RE agents, before going out to look.
Peter
Forgot to answer Mel’s query re brick vs other.
‘spose it’s my West Australian bias, where double brick & tile is dominant in the suburbs. Also growing up in non-brick houses while better-off relatives resided in brick & tile places reinforces my prejudices.
But yes, apart from that, it’s the supposed higher maintenance costs of non-brick houses.
Has anyone (particularly long-term owners of both types of houses) done a comparison between average repair costs by construction type, so we can see if there is significant variation? If not, we can delete this question, and make it a 21 (or 109) second calculation!
Peter
How about the 12 year rule?
] [
] That’s fantastic! Well done.
I would have trouble remembering all the options unless I had it written down.
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