Understanding Land to Asset Ratio: Your Ultimate Guide!

Ever wondered about the intricacies of land to asset ratio when it comes to property investment? 🏡

In this episode, we tackle a burning question from one of our podcast listeners, Bronwyn, who wants to know the nitty-gritty details behind this crucial metric.

And we love this type of questions!

So join us as we break down the concept of land to asset ratio and unveil the methods for calculating it effectively. From technical analyses to practical examples, we demystify the process and provide valuable insights for investors at any level.

That’s not all too! Bryce & Ben also shared some *valuable tips, including hacks for assessing land value, the significance of property age, and the importance of market value over council valuations.*

What are you waiting for? Tune in to find out more!
*And of course, here's the question:*
“Hi Ben and Bryce, my name is Bronwyn and I just wanted to ask a general question in regards to Land values. We talk about Land to Asset ratios when purchasing property.
I do have a property, and this doesn’t need to be generally specific to that property, but the council valuations or government valuations on the land are far lower than what land is being sold for in the area.
I just wanted to understand when you’re looking at land to asset ratios, which land value were we actually utilizing to get our percentages?”
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#QuestionsAndAnswers #AustralianPropertyMarket #PropertyPodcast
#landtoassetratio #australianproperty #housingmarket

[foresthill]

Thank you for this. What about the higher rental yield and more depreciation for newer properties for negative gearing?

[vanessawoo]

Are we referring to 'productive' land that we should look for in an investment or just the land to asset ratio making sure the land component exceeds the asset?