Curable Depreciation
Definition of "Curable depreciation"
Correcting depreciation by making improvements at less cost than the value added. For example, the management of an aging strip shopping center makes a decision to refurbish the windows and walkway at a cost of $2,000 per unit. Management estimates this will provide a rent increase of $100 per unit. The current neighborhood gross rent multiplier is 120. Therefore, the value added by the improvements is 120*100=$12,000 per unit. This is curable depreciation since the $12,000 unit value added more than compensates for the $2,000 unit cost of the improvements.
Popular Real Estate Terms
Removal of land by the action of water. See also erosion. ...
Lender (such as a bank) that has the property of the borrower as collateral (security, lien). If the mortgage is not paid, the property may be sold to make payment on the outstanding ...
Wedge-shaped step found on a spiral staircase with a wider tread on its outside portion. ...
Regional area from which a particular product or service can expect its greatest demand. For example, a retail department store expects to attract shoppers from a market area having a ...
(1) An arrangement to buy real estate at a specified price and conditions. The failure to honor the commitment may result in damages. (2) Bank commitment to lend money in connection with ...
Contract to act on the behalf of a principal in selling real estate. The principal agrees to pay a commission to the broker when a buyer is produced who is ready, willing, and able to meet ...
Metropolitan locality such as a city. It is heavily populated with many residents and businesses. An example is New York City. ...
The act or process of decreasing in size. The total amount of decrease. ...
Monies set aside in the event unexpected repairs are needed to a building or apartment. It may be in the form of an escrow account in which the seller of the property puts funds away if ...
Have a question or comment?
We're here to help.