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What is Rental Reality?

Discussion in 'Real Estate' started by Muz, 5th Sep, 2005.

  1. Muz

    Muz Member

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    Hi Everyone,

    Have seen the phrase "Rental Reality" being used here and on the Somersoft forum but what exactly does it mean? :confused:
     
  2. Alan

    Alan Well-Known Member

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  3. Steve Navra

    Steve Navra Well-Known Member

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    Hi Muz,

    A major article on this topic is forthcoming :)

    Short Answer:
    Rental reality is the objective method of valuing a property on actual market conditions. The "Real Price" of a property is ascertained from the actual market rental achieved . . . this objective method strips away the marketing biased 'opinions' of the many so called experts, allowing an investor to work out for themselves if a property purchase is a value proposition or not.

    Coming soon,

    Regards,
    Steve
     
  4. Muz

    Muz Member

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    Rental Reality

    Thanks Steve,

    Looking forward to reading your articles. :)
     
  5. Here_To_Learn

    Here_To_Learn Well-Known Member

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    Rentaly reality certainly opened up my eyes ... made me realise how overpriced Sydney really is :eek: !
     
  6. Tzaki

    Tzaki Well-Known Member

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    Is the yield in RR rental yield or total yield?
     
  7. kennethkohsg

    kennethkohsg Well-Known Member

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    Dear Steve,

    1. Doesn't your Rental Reality formula actually apply more relevantly to valuing the commercial properties rather than for valuing residential properties?

    2. How exactly does one go about measuring the likely future capital growth of a particular property in a particular suburb, when its future capital growth is not indicated by its present rental returns?... As in the case of new estate development such as the Secret Harbour Beachside Estate or the Anchorage Estate at Rockingham in Western Australia?

    3. Looking forward to your early clarification and reply, please.

    4. Thank you.

    regards,
    Kenneth KOH
     
  8. kennethkohsg

    kennethkohsg Well-Known Member

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    Dear Here_to_learn,

    How? Care to share your figures with us, for mutual leanring purposes, please?

    Thank you.

    regards,
    Kenneth KOH