ABSTRACT
What is a piece of land worth? The obvious answer is that it is worth what you can sell it for. But how do you calculate what price a piece of land might be expected to fetch? How, indeed, do you calculate what you can afford to pay for a piece of land if you are the prospective buyer? There is, let us assume, no building on the land at present, nor is it producing any rental income. Since property valuation is frequently a matter of putting a capital value on a future flow of rental income, where do you start?
