Investment value is a concept that is personal to each individual user. Each investor's investment value differs based on its situation or needs, location, building features, personal finance, or a tax situation can affect investment value. Knowing what components define investment value is crucial when deciding to lease or to buy. Market value is a concept that refers to the external value of a property. It represents the probable price a seller can obtain at a specific point in time from a typical buyer under normal conditions.
Market value differs from investment value.
Investment value is used in the decision process to lease or to buy. In return, the lessee agrees to make periodic payments to the lessor. Advantages of leasing Availability of cash . Most lease arrangements have fewer restrictions than loan agreements, providing flexible financing. There is little initial cash outlay in leasing.