Definition of "Economic life"

Expected period that property will provide benefits. It is typically less than physical life of the property because the property continues to have physical life regardless of inefficiency and obsolescence. Depreciation is usually based on the economic life.

Comments for Economic Life

Masood Malik Masood Malik said:

How long is Economic life in NY

Aug 10, 2018  18:28:45

 
Real Estate Agent

Hey Masood,
It really depends on the asset in question.

The calculations to assert the economic life of an asset deals with a lot of things, like the amount of time the asset can be used in production and its replacement cost. Not to mention that in big cities like New York, regulations change a lot, and that can also add weight in the economic life of it. So we suggest you talk with a real estate agent and even a real estate lawyer to help figure out your NY asset's specific economic life.

Aug 13, 2018  14:16:47
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

The rent a property commands in a free and open market setting. ...

Structural, storage, and shelving characteristics associated with a warehouse. ...

One who has died with a valid will in effect. ...

An idiomatic expression indicating the desire of an individual to understand new surroundings and all of its nuances including its quality and character. The derivation of the expression ...

Homeowner’s insurance is a kind of property insurance that covers risks commonly encountered by homeowners.There are several kinds of homeowner’s insurance ...

Standard precut lumber sizes for lumber industry needs. The typical sizes are 2 to 5 inches thick by 5 to 12 inches wide. ...

Also called hyperinflation. Very high rate of inflation rate. ...

Party that receives part or all of a construction job to do from the general contractor. ...

Doing business as, or DBA, means an official moniker for your enterprise or company. Regularly, a DBA is a state certificate serving as a registration name and issued under a ...

Popular Real Estate Questions