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In response to
"I'll watch it at home, youtube sucks balls here at work."
by
znufrii
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At least here what I remember being taught was there were two fairly reliable ways of measuring the true value of residential property.
Posted by
Loyola
Oct 28 '08, 12:14
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1. 5 to 5.5 times the average industrial wage would correlate with a historical trend line.
Or
2. 12 times the annual rent you would achieve by letting out the property.
It's a fairly rough guide as to where house prices should be to represent fair value. The video's good though, he expects prices to fall another 15% in general, but, of course, amend expectations to suit your own locality as best as you see fit.
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