An Unconventional Way to View the Property Market 7594243599092533555-blid-4563458623233916233

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I am going to discuss an interesting way to look at real estate investing that may be a bit unconventional to most property investors. What I have done is, go back to look at some of the tenets of real estate investment that we have taken for granted without examining the opposite arguments, then see if we can learn something from it, and more importantly see if we can discover investment opportunities most people miss because they fail to see the other side of the story. I found the most common opinion about real estate investing is: Land goes up in value because of its limited supply so buy properties where land is of limited supply! If you look at the property performance in Australia since 1996, good quality established suburbs all share this land scarcity factor, they all perform very well according to this tenet. For example, while building cost is increasing 3-4% a year tracking CPI, the land value has increased as much as 12-14% a year, which averages out a 10% growth for a property over the last 15 years.
from: http://ezinearticles.com/?An-Unconventional-Way-to-View-the-Property-Market&id=6745687