Understanding the tables and statistics
A famous person once said: ‘There are three kinds of lies: lies, damned lies and statistics’. This phrase highlights the point that numbers and statistics can be manipulated to suit either side of a particular argument. For this reason, statistics need to be considered carefully so that you can gain a greater understanding of what is actually happening.
It is easy to calculate statistics for the sharemarket, as all shares are basically the same. One BHP share is exactly the same and worth the same as any other BHP share. It doesn’t matter who owns it, how long they have owned it or where the shareholder lives: the two shares can easily be compared, as they are identical.
The same cannot be said for property. The problem with property and statistics is that property is heterogeneous. In other words, there is no single property on this planet that is exactly the same as another.
Understanding property statistics and data
Even in a brand new block of apartments, one apartment is not exactly the same as another. There can be differences in size, number of bedrooms, number of bathrooms, quality of fittings and fixtures, building level, car parks, views — and the list goes on. However, the most important difference between the properties is ...
