The below topic is discussed in detail on our Value is in the eyes of a owner Determining the Value of Investment Property Held for IncomeMost investors make the majority of the money they eventually earn on an investment at the time of purchase. Remember "buy low sell high?" As a result, understanding the following information is imperative for any real estate investor. However, what we provide on this page is "elementary my dear Watson". The subject is so important that we have created a very extensive e-course called Valuing Income Property . Influences on Value, either positively or negatively are physical, economic, governmental and social. Characteristics of Value include desirability, utility, scarcity, and transferability. Types of Depreciation which may cause property to suffer a loss in value are physical deterioration; functional obsolescence; and external obsolescence. Price, Cost and Value can be difficult for new investors to understand. They may assume that the price they pay for a property is also its value. They may also erroneously assume that the cost of any improvements made to a property adds to its value. The subject is so important that any serious real estate investor should take our e-course on Valuing Income Property . The above topic is also discussed in detail on our members' Income Property Valuation page. |