Buying properties “below market value”?

This notion has always been the gold nugget of property investing. What it essentially means is that one realizes profit or capital gain upon purchasing the property because the value for which it was acquired was less than what the property is ‘actually’ worth.

However, the term is a little obscure because the real or ‘true’ market value of a property is realized upon the sale of that property; essentially we do not know how much a property is worth and what its ‘market value’ is before it is sold.

This means that buying ‘below market value’ is more a matter of opinion than it is a matter of fact—that fact that a property sold for less than it is worth cannot be objectively determined as one has no avenue of knowing and subsequently having a widespread consensus on the plausibility of the two figures (i.e. the actual worth of a property and the selling price).

In response to the above, at HtAG, we offer a little bit of a different take on the buying below market value notion. Firstly, by focusing on real time data used in highlighting investment quality of suburbs, one deals with what has been one of the major issues with the property advisory sector, namely the gaps in the subjective opinion of advisers and the advice given on the back of conflicting interests…