Hi there everyone,
Still reading and learning….so this may seem like a silly question. I just wanted to know how do I calculate the value of the land of a property I am interested in? Do you use the rates given by the council per square metre (and is this info accessible by internet?) or do you just take the value given in section 32 of the property of interest? Basically would like to know how to break up the costs of purchase price into land value and house value.
Thanks[blink]
Hi,
Not sure how other investors value land but we do it as we would valuate a house.
Look at the sales history reports for land sold in that suburb (you can get this off RP Data or UpMarket or if you haven’t got subscriptions to these just ask a real estate agent to print one off for you…some are reluctant to do this but most shouldn’t have a problem). Then find the most comparable block of land thats sold and when we look for comparables, we not only ensure that its in the same suburb but also in close proximitiy to the target land because if an arterial road seperates the 2, this could influence the price.
We work out the square meter rate for a few similar comparables and then find the average per square meter rate and apply to the size of the target property.
Hope i didn’t just confuse you but hope this helps.
Kim
Kim Anand
[email protected]“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”
Hi Investment starter,
RP Data is about the best thing you can get for this purpose, but unless you have a real estate agent license, or are a salesperson, or otherwise involved in real estate, you wont be allowed access to it. The alternative if you are in QLD is QVAS (Queensland Valuations and Sales) which is the no frills version of RP Data, which is available to the public for something like $3000 per year. Expensive, but worth it if you want to invest in real estate full time. I dont know what the alternative is in other states – look around. I would try Natural Resources and Mines, or the Australian Bureau of Statistics.
Captain_Picard
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