Discount Rate
Definition of "Discount rate"
(1) The interest rate used to convert future receipts or payments in connection with real estate property to their present value. The cost of capital is used as the discount rate under the net present value method. (2) Also called the rediscount rate. The interest rate charged by the Federal Reserve Bank to its member banks for loans. A change in the discount rate will have a significant impact on the real estate market. See also capitalization rate.
Popular Real Estate Terms
Lease payments based on factors other than the passage of time. ...
Part of a capital gain constituting tax benefits previously taken and taxed as ordinary income. ...
Cash earnings generated from a real estate investment or property. Cash earnings equals cash revenue less cash expense. The cash earnings may or may not be discounted to its present value ...
Person chosen by a testator/testatrix to handle and conduct the terms of a will to an estate. Duties include collecting and selling of properties and paying debts of the state. ...
Judicial order requiring the named person or business to act or not act on something. An example is an order to a tenant to make rental payments to a landlord. ...
Falsify financial records and statements to misrepresent the financial position and operating results of the business. ...
A notary public's guaranteeing the authenticity of a signature. ...
Inappropriate and possibly harmful use of land. For example, a factory located on the shore of a river discharges toxic pollutants into the waterway. ...
The integrity, morals, and principles guiding an individual's or profession's actions. ...
Have a question or comment?
We're here to help.