How to Value Real Estate Investments[1]

by : Neil Sherman

Knowing How to Value Real Estate Investment Property

Being able to pick out an investment property which has real value can be done quite easily by keeping a few considerations in mind. Two of the most basic ways to generate value, or income from the investment property is going to be from the rent you get paid, or by how much more you can sell the property than what you bought it for.

Value through the rental income from a property is a very large part of the investment. A good way to determine how much value you are going to get from it is by comparing the income you are going to get from the property, compared to how much it will cost to purchase, repair, and manage. If you are not from the local area that the property is in, you may not be sure what type of rental income to look for. By doing a bit of research into the current levels of rent being asked for on similar properties in the area, you can get a better idea of how much value the investment property is going to give back to you.

The other way to establish how much value an investment property has is by looking at the current changes in the area market of the property. If there has been a general upswing in pricing of property, then it will be safe to say by purchasing and holding, you will be able to get more back then what you paid. This is concept among others which can be explored at Also, consider what you can put into the property in order to increase the value. If you purchase the property as an individual home in a residential zone, you may have a chance to bring in higher rent from someone turning it into a bed and breakfast business. By selling the property with the business, the return will be higher because of the added value.

One of the most basic tools an investor can use when they are looking to determine the value of a real estate investment property is to have a property valuer, or appraiser take a look at it. By considering various factors, and the fluctuations of the market, they can give you a good idea of what you are looking at for value on your real estate investment property.

Additional information about go zone investment and go zone investment opportunities is available at the Real Estate Investment Alliance website.