My partner has a house in cranberry he has invested in and is renting out at the moment and we are tonsure whether to hold on to it or not many thanks guys I’m loving your podcasts OK so the very familiar story that it is it’s a classic story and there are you know there’s if you do search on councils around Australia it’s very easy to work out the fastest growing municipalities by population growth.
Now a lot of these house and land package promoters talk that up you know because they’re arguing the population growth story all right now I argue counter to that around the affordability story the people who are going into those locations are usually the people on the lower incomes who are just trying to get their foot into the market they’re trying to exert the Great Australian Dream.
They’re just trying Roget into that market and in some cases it’s because their parents live to suburbs away and now it’s their turn Roget into market and they can’t get into their parents market so what they can afford or they’re looking for that four-bedroom two-bathroom alfresco setup you know sub in Melbourne or sub you know actually won’t even sub full ml was probably more sub in Sydney that’s almost sub so the reality isis that we still don’t have the scarcity and we still don’t have enormous owner-occupier appeal and it fails the practicality test so we don’t normally touch those follow the practicalities go to Google Earth have a look at the at a cul-de-sac at the end of some of these subdivision sand just see if the developer can go and release a bit more land at the end of that cul-de-sac because as soon as the demand.
And this is and this is reinforced that getting that over a long period of time it’s performed well and it hasn’t been smooth sailing throughout that whole process yeah so you look at marketplaces like Sydney and we argued to ourselves are we willing to go kilometers out of the seat but the redoes come a point where we say kilometers from major employment centers one and a half hour to hour commutes.
That’s not the psychology of the higher-income owner-occupied buyer they don’t want to go out there so why are we going out there to chase a wave right strategy when potentially we can divert the cash for that , all the property out wide and put that into market place like a Brisbane or an Adelaide or another market and even you know soon Perth where we’re buying counter-cyclical where you can see those opportunities.
It just it doesn’t make sense to me that we would risk our clients money if we’re talking about getting short-term returns if the client says i don’t care i want along-term result that’s great we will hunt in those marketplaces and you know we’re still hunting in Melbourne and doing exactly that this data irrefutably confirms what you just said that if you combine the cities with the best locations the long-term payoff is long term papers enormous so but not everyone can do that.
I got a quick question therefrom Stacey hi better choice I have question about the suburb of Bournemouth Melvin topic hey I recently went to property seminar in Melbourne and the presenter was telling us the Melbourne be a big growth area in the future along with packing them officer and another suburb I cannot recall do you think Barry do you think this is true only because.
standards of the same but we know that the accounting standards can be the same and you can have different degrees of fidelity to those standards right if you’re not careful conservative companies are gonna look expensive and aggressive companies are going to look cheap but conservative and aggressive are being used in the context of how to measure awnings so that’s.
The first stop is the definition stop let’s try this out on couple of very widely use models take the ratio numerator is usually the current stock price in the denominators where you see the action though i can divide the price per share by earnings per share in the most recent fiscal year that’s called current p i can divide earnings-per-share the most recent months that’s called the trailing p/e i can divide price bar and expression that I expect in the next months which is forward.
Be or i can even divide price per share expected own expression dear or which would be really forward pow why would I do this well it depends on what I’m trying to show i could divide price by learning special before extraordinary items are after extraordinary items primary unexpressed share partially diluted earnings per share fully diluted earnings per share in other words.
i can take the same company and compute or even different p/e ratios at any given pointing time you might want to so what well I’m going to get numbers that are low from some measures of p and high from others right which one will I use it depends on what story.
we Nowell not the agreement and really normal customs practice provides one such we could release the goods on the security or guarantee that the important will pay Melbourne property valuers the customs duty that maybe I’d once the quantum of the proceeds of resale is not earn and the finalist price on the set list and then determine the valuation I’m lightest touch I’m and weakening play a conditional release procedure to be agree.
with the important and the payment due to lie so the springs and my presentation that to any need mom but just a couple more things before we open up the we’ve been honored to to questions if you are too elitist EDS through Thea study or try any and the full Customs and Excise studies here at the University of Canberra of is customs valuations a postgraduate elective in in our master of its national customs Lauren and administration degree and Dean other ICES University camera programs we also offer customs.
valuation as known award vocational course odor as a short quotes and these would be a viable all the way only Iran’s and we could certainly Tyler such short courses to suit the needs of your particular starched if you would like any further information about any through the constitutions contact the tiles on our own the screen now and all leave those details on the screen to you well we move onto decreased my head okay thanks Craig and we will just go to through the question for offside plays a patient with this out just meet ass and will be back units okay so we have received quite a few questions am whilst stats we use question from oak alley from Mad to withe has asked you’re flying to fades that you can only make additions.
Of the business to let all the bits so these multiples tend to be higher than the current market trade multiple sand that could be a benefit if you’re using this for coming analysis it can control it it includes a preview which could give you a premium estimate if you’re analyzing this business because my fire drawbacks and nonrepresentational analysis is it is very difficult.
in many cases to find property valuation Sydney cost transactions that you want to come in especially in today’s market with amazing as prevalent as was years ago or something like that it’s so big doesn’t really make sense either other people really buying companies this bigot goings one of these jobs exist it’s tough to find transactions of a bit or acquisitions of businesses that are so much to this day looking at that’s one big disadvantage second the analysis is historic also even if you do find transactions there they could be dated.
To be from last year two years ago so a lot of times the environment changes mark change might have to give you the best indicator oh look at that wasn’t doing it is so you know as analysts is it’s often very difficult to come together not because of the map because it’s technically no-tit just talked to dig that information and even if you do in mind like transactions sometimes it’s tough to find underlying data for the aggravation that time to a little bit example allowed using nowadays it’s for something this is this could be but I’ll give you good techniques to have finally got some sort of discount category analysis this is taking a company’s future cash flows and projecting it back to current value and notice when we do use it just kind of guess what else.