How to beat a controlled market?

Question

Hello brothers and sisters, I am a new real estate investor and I am excited to be taught by you guys.
I am from a pretty country with pretty f*ck up government ( sorry for the language, but it's true ) and real estate is a mess, it keep going up and down with no direction at all and the bank is no more than robber in day light with their we-do-what-we-want interest rate ( changing over time by their will ) and secret policy about true market value of property, growth rates ( maybe they really don't know ).
So, in short, what will you guys do to find out about the true market price and what kind of leverage will you use if you are in my situation?
I am waiting for your help.
Thanks everyone.

Account Closed · Answer

@Royal Bel

It doesn't matter what a government says a property is worth. Market value is what the market decides. You and the seller are the market - the price you agree on is the market value.

Having lived in some crazy places as well, I would say the bigger risk for you is being sure of the property. I.e. if you purchase the property, what is the probability that the property will be properly registered in your name, that the person who sold you the property had a right to sell the property to you and that a court of aw will uphold your right to a property that you purchased in good faith. What is the risk of government appropriation, what is probability that the property register is in good order and you actually own the property that is described on the title, etc.

Your country is not the only one where all mortgages of variable interest rates. The important thing is to  buy within your means so that you will be able to pay the mortgage in the event of interest rate fluctuations.

At the end of the day, its about analyzing the risks and deciding how much risk you are willing to take. Good luck!

Royal Bel · Answer

Thank you Noble Wendy, I will keep that in mind.So, what do you think I should consider to buy a property at fair price?