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
If escrow is the legal “moment” where assets are held by a third party (an escrow agent) hired by both the buyer and the seller of goods like real estate and insurance until the ...
The meaning of undue influence revolves around a control one individual can exert upon another to persuade them to do something that won’t be beneficial for the influenced party. ...
An Appraisal is the evaluation of a real estate property made by a neutral third party expert known as an Appraiser. There are a number of reasons a home Appraisal is done: - ...
Small furnace placed between the studs of a wall. It is typically electric, but in the past more frequently was gas. ...
Person or business that benefits from the work of another person or business. The recipient has not compensated the other party for this gain. In law, the one being enriched at the ...
Interest computations based only on the original principal. For example, the simple interest on a $100,000, 8% loan is $8,000. It is compared with compound interest which is applied to the ...
(1) Financial ability and soundness of a business or individual to afford the purchase of property. (2) Worth of the dollar in real terms considering inflation. ...
Upper layer of ground. ...
A strong piece of lumber at least two-by-four. It is used for studs and beams to hold a building or structure up. The structure is in effect, attached to, or built onto the structural ...
Have a question or comment?
We're here to help.