This series of articles aims to explain the different aspects of investment analysis in real estate investing, which include investment property analysis,comparative market analysis, and the property valuation methods, while also explaining the different aspects of each and the tools used to conduct investment analysis with ease and at high efficiency.
What Is Property Valuation?
Property valuation is a process of determining the value of an investment property based on the different metrics that evaluate the property’s return on investment and its profitability in both the short term and the long term.
The property valuation is an inseparable part of investment property analysis, which in turn is an inseparable part of real estate investment analysis.
While the investment property analysis deals with all the different aspects of an investment property on a general level, such as the property’s location and its effects on its appreciation and its occupancy rate, property valuation is more concerned with the financial aspects of the property, which are typically aspects that a real estate investor can control and adjust in order to reach the desired result from the investment property.