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Investment value in real estate refers to the value of a property from the circumstances of a particular investor, instead of it’s general market value.
Because every individual can be in different phases of life and different goals, the investment value for one person is seldom similar to another.
One of the most common factors that heavily influence investment value is time.
When someone has to get a transaction done within a short period of time, then the investment value increases.
This might be because he faces financial penalties for being unable to do so, have debts to pay, or might be liable for more taxes, etc.
A young investor would also have time on his side compared to a veteran investor as the former has a lot more years to reap the financial benefits of a good investment compared to a retiree.
The gist of all these is that the market value or assessed value of a house has little bearing on a person’s investment value.
This is why there are often situations where great property deals can be closed by savvy flippers.