Land Prices: Future Anticipation

This lecture revisits a model for land prices that incorporates future price expectations, demonstrating how to calculate current land prices based on anticipated future prices. It compares the impact of anticipating future prices versus growth rates on land prices, highlighting the importance of accurate future price predictions. The lecture also discusses the advantages and disadvantages of using a rate of value appreciation versus direct future price anticipation, emphasizing the robustness of calculating land prices based on future price expectations. It concludes by emphasizing the significance of accurately predicting future land prices for investors.