Short answer：A discount from a past peak or asking price does not establish value. Use comparable sales, sustainable rent, building condition and legal obligations to judge whether the price reflects risk.
Explain the discount
Check floor, area, outlook, tenancy, repairs and transaction timing. An urgent sale is not proof of a clean property, and a bank valuation does not guarantee resale proceeds. Missing evidence should reduce confidence rather than invite optimistic assumptions.
Test conservative cases
No fixed discount replaces analysis. Model lower rent, longer vacancy and additional repairs against the household’s ability to hold. Value must also fit the period for which the money can remain committed.
Before deciding
- Use completed sales, not only asking prices
- Investigate discounts and restrictions
- Allow for appraisal shortfalls and repairs
Sources and method
Sources support the specific rules described. Checklists and hypothetical calculations are editorial explanations, not measured market results or individual approvals.
Revision：Removed unsupported experience, case outcomes and statistics; corrected the topic-specific rules and limitations described above.
Scope：General information only, not personalised legal, tax, immigration, admissions or investment advice.