Todd Polke argues that land value and location matter far more than land size when investing in real estate. He compares units versus houses and urges investors to run the numbers and do their due diligence rather than rely on assumptions.
Now, when we talk about units versus houses, they talk about the land value. The land value is what it's all about. In a unit, you might only own 1 square meter of land in that unit complex. Could that 1 square meter of land in that specific location, could that be worth more than 1,000 square meters out there in the middle of nowhere? It's not about the size of the land. It's all about the desirability. Where's the amenities? Where's the livability factor? All those different type of things. So point about this is let go of any preconceived ideas, look at the deal that's on the table in front of you right now and run the numbers, look at it from a due diligence standpoint.
