- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
Reversionary Value
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.
0 comments