STEVE NAVRATIL
0419 220 907
info@mypropertymentor.net.au
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Owner And Tenant Affordability

Home Timing the Market Owner And Tenant Affordability

THE ONE REALITY THAT WILL ALWAYS EXIST IRRESPECTIVE OF FLUCTUATING MARKET CONDITIONS IS OWNER / TENANT AFFORDABILITY.

THIS METHODOLOGY IS A PROPERTY’S PricingReality™ VALUE

What can an owner/renter afford and what will the owner / tenant pay to live in/rent the property?

Market rent achievable is the reflection of the greater market’s actual ability to afford and pay for the mortgage or rental of a particular property in a postcode.

THIS VALUATION METHOD TAKES ALL OF THE FOLLOWING INTO ACCOUNT:

  • Current local, national and international economic conditions
  • Employment and wage levels
  • Interest rates
  • Inflation / CPI
  • Supply and demand

THE MPM METHODOLOGY OF DETERMINING THE REAL VALUE OF A PROPERTY IS BY USING PricingReality™ AS THE VALUATION METHOD.

  • PricingReality™ is based on affordability levels in society. The natural limiting factor is income growth. It is unrealistic to expect property, or any other asset class for that matter, to grow beyond the level of affordability in a society – the demand must come from somewhere.
  • Renters are less affected by interest rate increases / decreases, inflation or market emotion than the mortgage holder is. Tenants care mostly about their individual level of affordability. It thus makes sense to base the method of property valuation on this factor.
  • People rent for many different reasons and there are many different levels of affordability. Median rental figures per suburb can be obtained from a variety of sources for example, REIA; Residex, local real estate agents; ABS; www.allhomes.com; www.domain.com.au; et al.