Interesting topic. I read a paper a while back (when I was looking to buy my house) that tried to compute fair values for properties in G10 countries based on the following variables: multiple of yearly avg rental income potential + closeness to downtown core + closeness to public transportation + new construction of the property type (detached, semi, or condos). Wondering if a fair value property index/estimator would be interesting. There may be something like this; I am not particularly plugged into the property market investing space, so I don't know.
IDK the UK tax system but how does capital gain on buy to let comare to TG61? Seems like there is a fair amount going through as it is making new lows thanks to another political crisis, or perhaps the prices make the news. Cheers
British millionaires in UAE are now caught between missiles from Iran and high taxation from UK!
Talking about a rock and a hard place … pretty good Wissam ahah
Interesting topic. I read a paper a while back (when I was looking to buy my house) that tried to compute fair values for properties in G10 countries based on the following variables: multiple of yearly avg rental income potential + closeness to downtown core + closeness to public transportation + new construction of the property type (detached, semi, or condos). Wondering if a fair value property index/estimator would be interesting. There may be something like this; I am not particularly plugged into the property market investing space, so I don't know.
All those inputs are important.
The more you look through units the quicker you get at estimating fair value at any points in time.
I have been quite active on auctions and it requires to browse very quick through catalogue given length of it on a monthly basis.
My own method is to compare within a given area (location, location) at price/sqm over recent period and / or history.
It quickly jumps at what is cheap and why (renovation needed, contractual glitch etc).
I see. Makes sense. Thanks for the article.
IDK the UK tax system but how does capital gain on buy to let comare to TG61? Seems like there is a fair amount going through as it is making new lows thanks to another political crisis, or perhaps the prices make the news. Cheers
Hey Karl, I assume you’re referring to the 2061 gilt issuance.
You can’t really compare it to property investment, as there is no capital gains tax on UK gilts..
UK property capital gains are 18 to 24% or 19 to 25% as a corporation.