Eyeing that particular unit but not sure whether you are overpaying it?
This question must be one of the most common faced by property buyers.
I was doing some research as my wife and I are thinking of getting a second property when I came across an interesting piece of information - The Rule of 15.
The Rule of 15 is a guideline or rule of thumb that enables a buyer to judge whether that listed price will get you a bargain or make you end up being a carrot head.
Similarly it can help sellers price their property better too.
Basically the rule works this way:
1) Find the going monthly rent of a similar unit (e.g. 2 bedder) in the location you are interested in.
2) Multiply that rent by 12 to get the annual rent and multiply again by 15.
3) If the unit that you are eyeing costs much more than the figure you obtained in step 2, the listed price is probably way over.
This is a simple way to get a quick valuation. However there are many factors that can affect a property's price. So due diligence must still be done in your research.
Hope this piece of information helps.