front page article in sydney telegraph today, page-5

tcisboss.....yes it is true that a pub is a business and there is a goodwill component that is separate and distinct from the value of the freehold property, however, the nature of a pub business is such that the valuation of the freehold property to a large extent is attached to that goodwill. Now off course in many cases you can purchase only the goodwill of a pub business and get a leasehold of the premises, however the examples mentioned include the freehold property.....no pub business goodwill costs $40 Million.

The point is that a commercial property should only be worth as much as the turnover it can achieve.

A residential property should be no different in theory....so if you can't achieve the rentals in proportion to the cost of the premises, then obviously the property is priced too high, and anyone purchasing it at those levels is a lemming asking for trouble.