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
Percentage of rentals estimated not to be made because of actual and anticipated vacancies. ...
property that has been segregated into parts. ...
Person who dies leaving a will specifying the distribution of the estate. ...
Written proposals and acceptances applicable to the aspects of the transaction. The escrow agent must follow the purchase and sale agreement. ...
Individually owned lots and houses with community ownership of common areas. ...
Tenant breaks the lease because the landlord does not keep the premises habitable. ...
The right to demand that title be conveyed upon payment of the purchase price. ...
Same as term junior mortgage: Mortgage placed on a property after a previous mortgage. It can be a second, third, etc. mortgage. A junior mortgage is subordinate to the terms of a previous ...
See savings and loan association. ...
Have a question or comment?
We're here to help.