The " Real Estate " is always the land component , a house or...

The " Real Estate " is always the land component , a house or any form of dwelling is an improvement ( in theory ) ..While the land component will appreciate , the " improvement will always depreciate ..

Improvements make little or NO difference , yes on occassion Its possible to spend 50 k and Gain 100k ..but more often than not Its spend 30 k .get 15 back , thats why you only ever " add value " if its increasing a yield , while you land value continues to Rise .

I used to pick up blocks in affluent areas , build project homes and sell ..At the time in these areas people didn't know what a project home was , they thought all was " designed " ..well , I did that ..I picked the improvement .

Land tax bills these days are reasonably accurate on value , even council rates ..which used to be many years behind are pretty much " on the money generally " ..but its always the value of the land , always understand whatever you do on top doesn't make a whole lot of difference ..although It can ..If It helps your project continue while somebody else assists you to pay ..For what will be Your LAND!