From a recent article by Matusik: A Tale of Two Queensland Buildings
"Firstly, an investment dwelling’s worth should be determined by income – that means rent – just like it does for offices, shops and factories. It shouldn’t be determined by a “comparable” resale.
Secondly, how and where the developer spends his or her money on a project shouldn’t affect the market’s (nor valuers’) perception of value.
- An investment’s value shouldn’t be determined by what a buyer once paid but by its income.
- The distribution of costs has no bearing on the end value of a product."