Serena Il, Center of the Universe | The market value of the land is the asset . The liability is the amount that you owe on the mortgage. Lets say you purchased the land for $3000/acre and it is now valued at $4500. You have paid down the mortgage to $1000/acre. Your equity or net worth is $4500-the remaining mortgage of $1000=$3500/acre. The original purchase price is your cost basis which comes into place if you sell it. |
Land Equity
