UNDERSTANDING YOUR PROPERTY’S TRUE VALUE

I remember a pithy epithet trotted out by several of my teachers when I was younger around the spelling of the word “assume”, one frequently used to encourage us to find out our facts before making decisions or sweeping statements. I’m sure you’ll know what I’m talking about, and how we are all so regularly reminded that it is indeed one of life’s great aphorisms.

To provide a case in point, I recall working with an investor who had purchased a three-bedroom house for $400,000 with a yield of around 6.5%. Immediately post purchase, he had spent $10,000 on a quick renovation to split the living room into two bedrooms and convert the property