What is 'Land Value'

Land value is the value of a piece of property, including both the value of the land itself as well as any improvements that have been made to it. Land values increase when demand for land exceeds the supply of available land, or if a particular piece of land has intrinsic value greater than neighboring areas (e.g. oil can be found on the land).

BREAKING DOWN 'Land Value'

Owners of land use land value to determine how much to charge other parties for its use. For example, an individual who is renting out several acres of farmland, for use by ranchers for grazing cattle, will determine an amount to charge for its use by looking at the market value of the land compared to land taxes and the capitalization rate.

RELATED TERMS
  1. Land Value Tax - LVT

    A tax on the value of a piece of land. Land value tax inherently ...
  2. Land

    Property or real estate, not including buildings or equipment, ...
  3. Marginal Land

    Arid and generally unhospitable land. Marginal land usually has ...
  4. Ground Rent Arrangement

    A situation in which someone owns a structure but not the land ...
  5. Land Contract

    An agreement between a buyer and seller of property in which ...
  6. Hard Landing

    An economic state wherein the economy is slowing down sharply ...
Related Articles
  1. Managing Wealth

    How to Keep a Land Investment From Going Bust

    Investing in land can yield big returns. But investors should consider their goals, as well as the following details, to make the deal a success.
  2. Investing

    Top 4 Things That Determine a Home's Value

    Your house depreciates over time, while the land beneath it is likely to do the opposite.
  3. Insights

    What To Do When The Government Wants Your Land

    Find out how the government evaluates your land, what your options are and how to get the most from it.
  4. Managing Wealth

    The Top 5 States Where Retirees Can Buy Cheap Land

    Buying vacant land for future gain is high-risk. Look for low prices in undeveloped areas likely to see a building boom in the near future. Here are five.
  5. Investing

    What Homebuyers Should Know Before Buying

    A physical structure depreciates over time, but the land underneath it appreciates.
  6. Investing

    Lands' End Looks to Athleisure Wear for Turnaround

    Hoping to reverse a four-year skid that has seen sales fall at an annual compounded rate of 5%, Lands' End (NASDAQ: LE) is pinning its growth hopes on the athleisure wear trend. The retailer ...
  7. Investing

    How You Make Money In Real Estate

    No matter what anyone tells you, the basic ways that money is made through real estate haven’t changed in centuries.
  8. Investing

    Land's End CEO Abruptly Resigns After Rough Tenure

    Land's End (NASDAQ: LE) announced Monday morning that its CEO had abruptly resigned her position after less than two years on the job. In a statement, Federica Marchionni described it as a mutual ...
  9. Managing Wealth

    The $1M Question: What to Do With a Windfall?

    If you're on the receiving end of a $1M windfall, what would you do with it? Here's what a survey found; the results may surprise you.
  10. Investing

    Now’s The Time To Buy The Land Drillers

    As both natural gas and oil drilling activity continues to increase onshore, the land drillers will benefit. For investors, the firms doing the heavy lifting continue to see rising rig counts ...
RELATED FAQS
  1. What is property, plant and equipment, and what does it mean?

    Property, plant and equipment (PP&E) is a term that describes an account on the balance sheet. The PP&E account is a summation ... Read Answer >>
  2. Why are the factors of production important to economic growth?

    Find out why the factors of production are critical for real economic growth, where wages rise and consumer goods costs fall ... Read Answer >>
  3. Do you always have to consider intrinsic value when purchasing a stock? Why or why ...

    Take a deeper look at why value investors consider a stock's intrinsic value an important consideration before picking a ... Read Answer >>
  4. What economic indicators do agriculture investors need to watch?

    Agriculture investors should keep an eye on land prices, interest rates, inflation, harvest performance and speculative investment ... Read Answer >>
Hot Definitions
  1. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  3. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center