What does it mean when a property is said to have "future earning potential"?

When a property is described as having "future earning potential," it implies that the property might increase in value over time. This concept is important in real estate investment as it indicates the possibility of appreciation, which could lead to a profitable resale or increased rental income in the future. Factors influencing a property's future earning potential include location, market trends, development plans in the area, and the overall economy.

The idea that a property will not lose value is overly optimistic and doesn't account for market fluctuations, making the first option not applicable. Similarly, stating that a property is regarded as a bad investment currently overlooks potential growth and investment opportunities, which is why that option does not reflect the meaning of future earning potential. Lastly, stating that a property has high maintenance costs with no return implies a negative outlook, conflicting with the concept of future earning potential, which is inherently tied to the possibility of value appreciation and investment opportunities.