The reality is, a property’s physical structure will depreciate over time, while the land beneath will appreciate in value.
Land appreciates because of limited supply.
Consequently, as population increases, so does demand for land, driving up price over time.
Properties continue to depreciate until they no longer add any vale to the land.
Here are some more key implications to consider :
• Properties in a cul-de-sac are usually in higher demands (less traffic, safer for children etc)
• Specific schools can influence the demand for properties in certain areas
• Prospective commercial and residential developments in the area may also impact land values
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Friday, 17 May 2019