Property Investing Tip # 1

Components to Value.

There are two components to the value of property. One being the raw land, and the second is the value of improvements( bricks and mortar).

The land value will appreciate in value over time, while the bricks and mortar can be treated like a new car. That's right, as soon as you drive it out of the showroom, the depreciation clock is ticking.

A higher land value component in the overall investment will strengthen the certainty of capital growth.

Do we all rush out now and buy blocks of land?

Consider this; It is the improvements on the land that will generate the ongoing income.

Check out this property as an example.