Why Actual “Property” Doesn’t Do Much for Property Value (Believe It or Not)

Don’t get me wrong, though: that beachfront real estate you have over in the Florida Keys can rake in a ton of money. However, it’s not just the structure that brings in the moolah for home sellers; it’s the land itself. Here’s why:

Why Your Real Estate Can Actually Increase Your Property Value All By Itself

Talk about going against the grain here…. It’s actually possible for the value of your real estate to go up if Iggy Azalea mansion property valueyou raze your property down! Only in certain conditions, though. This is where “location, location, location” really does ring true for your zero-down home from H.O.P.E. to Own, because the one aspect of real estate and property values that’ll always appreciate is this: your land. The actual dirt houses and buildings sit on.

Why is that? Why does the land appreciate? Think about it. Land is limited. It’s not like a builder can construct land. Builders construct new homes. New stores. New buildings. New barber shops. New malls. New subdivisions. Nobody builds land. Because the demand for land constantly increases due to growing populations, but the actual supply of it never increases, you can only expect the price of the land to go up.

This is where it’s crucial to see that property value isn’t necessarily determined by the actual building — but the land underneath it.

Granted: property built on land can increase the value of the real estate, for sure — but only to a certain extent. Given the fact that renovations would have to be made along with improvements, updates and upgrades  to keep up with real estate industry trends, over time it’s actually possible that the building sitting on the land can actually decrease property value even though the land itself continues to gain some.

Hence Why You Should Pay Close Attention to Your Parcels

Where real estate is located matters. Remember that. When you’ve considered location — access to multiple amenities, environment, proximity to schools, that sort of thing — then, only then, can you look at the property value as something to be built with drywall.


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