It is sometimes said that land represents residual value, Finance Basics

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It is sometimes said that land represents residual value

It is sometimes said that land represents "residual" value. This statement reflects the fact that improvement costs do not vary materially from one location to another whereas rents vary considerably.

Hence, land values reflect changes in rents (both up and down) from location to location. Do you agree or disagree?

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Finance Basics: It is sometimes said that land represents residual value

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