Hands holding a plywood cut out of a house
Determining property worth

Key ideas and principles

On the value of property, it is important to explore the impact real estate has on a nation’s wealth and economy and how investing in property can increase long term wealth.

Regardless of your interest in property, whether you own a house or an apartment, want to know a little more about property, want to be an investor in real estate, or want a job in the industry, this week you have started your property journey. This week you have gained a better understanding of the impact that property has on a nation’s and your own wealth. In addition, you should now have a better grasp of professional terminology and started to develop an appreciation of how to consider property for wealth creation.

The first question explored was whether house prices always rise – but unfortunately they may not and in some countries they even go down. We spoke about inflation and how nominal price increases are reduced by inflation – to come up with real price increases. We considered some professional terminology; allowing you to put together a glossary of terms and briefly reviewed the effect of interest rates on overall wealth gains. Finally, we reviewed working within the real estate industry, exploring jobs and broad salary ranges within the profession.

So where to next week?

Next week, we will delve further into property and work toward answering the following:

  • What gives property it’s value?
  • What influences the value of land?
  • What are some of the characteristics or attributes of land?
  • What impact does zoning, have on the value of land?
  • What legal and statutory authorities have rights and privileges over land that you might own?

Your task

Reflect on the following questions as a form of self-assessment. If you have some problems answering the questions, feel free to review the content and then attempt the question again.

  • What is “real estate”?
  • How important is real estate to our economy?
  • Identify some of the careers in the real estate industry that you might be interested in.
  • Why might purchasers pay more for a property than its “market price”?

Collaborate with your peers to help develop answers to these questions, by posting in the comments section.

Whether you post or not, remember to click on the pink “Mark as complete” circle when you have worked through the task.

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This article is from the free online course:

What Influences Property Values?

Deakin University

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