Inflation Equity
Definition of "Inflation equity"
Increase in the value of property caused by inflation. For example, John buys a home for $150,000. Because of inflation, the home is worth $200,000 five years later. The inflation equity in the home is $50,000($200,000-$150,000). Inflation equity may be used to acquire a second mortgage or a home equity loan; however, the lender risks losing its equity collateral if the housing market experiences a slowdown and the home's value recedes back to its uninflected equity value.
Popular Real Estate Terms
Administering and directing the activities of a real estate brokerage firm to assure they are in compliance with regulations and policies. ...
Member Of the American Institute of Real Estate Appraisers. ...
Body o law relating directly to condominiums and cooperative developments. Most property law provides vertical ownership of property in the sense that property owners own mineral rights as ...
Money paid for a real estate project or investment that can be taken off on the tax return as an expense. Expenditures made during construction of a building that do not go directly into ...
Value is exchanged by the parties to an agreement involving current or future performance making it legally enforceable. Without reasonable consideration for performance, the contract may ...
Welcome to the world of magical yet perplexing real estate! Undeniably, there's a lot to learn, but we're here to explain miscellaneous terminology so that you can make educated decisions. ...
Removal of a tenant from a portion of a rented or leased premise. ...
Need to know the Ad Litem definition after coming across this weird term? Ad litem is short for “Guardian Ad Litem” or “Attorney Ad litem”, a legal term that ...
Determining the measurements of a specific location. ...
Have a question or comment?
We're here to help.