The capitalization of ground rent method is based on the premise that property value is linked to what future benefit?

The correct answer emphasizes that the capitalization of ground rent method evaluates property value based on the anticipated future benefits that come from property ownership. This method considers how the income generated from the property—such as rent—contributes to its overall value, reflecting long-term profitability and stability.

When assessing a property through this method, appraisers project how much income is expected to be generated in the future and discount that income to present value, illustrating how future benefits, like consistent rental income or appreciation in property value, can influence current property valuations.

In this context, immediate resale potential, current market trends, and future development costs might play roles in broader property valuation considerations but do not directly address the fundamental premise of the capitalization of ground rent. The method specifically focuses on the long-term benefits derived from ownership rather than transient market factors or immediate conditions.