The Value Proposition
It’s all about value, baby.
Guide to understanding value when investing in real estate
Value is a word that should never stray too far away from an investor’s vocabulary. As previously discussed, investors must always be aware of their financial net worth, which directly relates to the value of their real estate portfolio.
However, rookie investors often confuse the differences between assessment value (used for taxation), investment value (value derived from income producing properties), market value (price a buyer would pay on the open market) and sentimental value (values associated with personal benefits)
As mentioned, understanding property values comes with experience and novice investors should take extreme caution until they fully comprehend these concepts. Improperly calculating values can lead to extremely poor financial choices.
If you ever have any questions about property values, any at all, please don’t be shy. Give me a call or send me a text or email. I am always willing to chat real estate over a cold beer or strong coffee.