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Reversionary value refers to the property value upon the expiration of a given time period.
This can help investor make critical decisions and homeowners make important financial decisions.
Comparing the current property value versus the reversionary value can give people a general idea of whether a purchase is worth it.
For example, if a property will be worth $100,000 in reversionary value after 30 years upon the expiry of the lease, a current price of $200,000 can look like a steal.
However, property buyers should be smart enough not to solely depend on reversionary value in making investment decisions.
Factors like economic changes, inflation, population shifts, favorable masters plans, etc, can all greatly affect the value of property in the future.