I'm sure they have. But I doubt that there was any accurate way to set a Rateable Value for the site, given it's prior use and subsequent history. A classic case of value being what a willing buyer will pay for it.
Guess what the new rateable value will be when done next.
Anyone who buys property will tell you that RV is a relative indication of value only.
Wow paying more than market value........ They must have done the figures to justify that sort of price?
Nobody said they paid more than market value. They paid more than rate-able value! And lets face it - while the rate-able value of standard quarter of an acre sections in town (where there are plenty of comparable properties around and regularly sold) is normally reasonable close correlated to the market value - the market for university campuses is quite less liquid. Which means QV has little comparable data to determine the GV and nobody is interested anyway to get the rateable values for such sections up.
I am pretty sure that Ryman paid the market value - willing seller, willing buyer .
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Nobody said they paid more than market value. They paid more than rate-able value! And lets face it - while the rate-able value of standard quarter of an acre sections in town (where there are plenty of comparable properties around and regularly sold) is normally reasonable close correlated to the market value - the market for university campuses is quite less liquid. Which means QV has little comparable data to determine the GV and nobody is interested anyway to get the rateable values for such sections up.
I am pretty sure that Ryman paid the market value - willing seller, willing buyer .
No need to even do any research into the detail. RYM will have got it right.
RYM building lots of little multi level apartments in Melbourne, Hmmmm
Last edited by Beagle; 02-08-2018 at 05:39 PM.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Nobody said they paid more than market value. They paid more than rate-able value! And lets face it - while the rate-able value of standard quarter of an acre sections in town (where there are plenty of comparable properties around and regularly sold) is normally reasonable close correlated to the market value - the market for university campuses is quite less liquid. Which means QV has little comparable data to determine the GV and nobody is interested anyway to get the rateable values for such sections up.
I am pretty sure that Ryman paid the market value - willing seller, willing buyer .
I do stand corrected and I agree with you that it was more than rateable value. It just baffles me how high these properties are going for and how much Ryman need to do try and make a profit out of it....... I am sure they have done the SUMs, but the bigger they get one hopes their purse strings dont get looser (wasting). At the end of the day a brilliant company with a great track record!!
Melbourne apartment market "about to be smashed" every year for 3 years now...
SUM things just don't make sense do they ! Like RYM consistently growing at one third to half the rate of SUM over the years but trading at a 50% PE premium.
Bean counters know eventually the numbers MUST do the talking and silly relativity theories will be exposed for the old wives tales they surely are.
Me, I reckon big city prices in Eastern Australia have reached peak affordability just like Auckland has and the chances of further gains over and above inflation in the medium term are slim to none.
Makes SUM people wonder if a little company building a fair bit in provincial N.Z. is the better bet...
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Originally Posted by Ggcc
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