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How to find if you are investing at a good price in a House or other real estate asset



The "intrinsic value" of real estate is therefore defined as the net present value of all future net cash flows which are foregone by buying a piece of real estate instead of renting it in perpetuity. These cash flows would include rent, inflation, maintenance and property taxes. Take the calculation period at 20  years for good assessment.



Ref: http://www.aboutinflation.com/glossary/real-estate/us-real-estate-index-long-term-charts

http://en.wikipedia.org/wiki/Intrinsic_value_(finance)
 

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