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Income approach
Income approach The process of estimating the value of an income-producing property through capitalization of the annual net income expected to be produced by the property during its remaining useful life.
RELATED TERMS--------------------------------------
Value
The measure of the monetary equivalent of a property. The four essential elements of value are utility, scarcity, demand and transferability.
Property
The rights of ownership. The right to use, possess, enjoy, and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights.
Capitalization
An appraising term used in determining value by considering net operating income and a percentage of reasonable return on investment.
Annual
Any kind of plant that must be planted every year.
Life
Cycle costing In property management, comparing one type of equipment to another based on both purchase cost and operating cost over its expected useful lifetime.
SIMILAR TERMS--------------------------------------
Income and expense report
A financial report generated by a property manager that details the income and expenses from a property and the amount remitted to the owner.
Income capitalization value
The indication of value derived for an income-producing property by converting its anticipated benefits into property value through direct capitalization of expected income or by discounting the annual cash flows for the holding period at a specified yield rate
Income multipliers
Used by most lenders to determine how much can be borrowed. Averages tend to be a single income multiplied by three or joint income multiplied by 2.5.
Income property
Real estate that is owned or operated to produce revenue
Income ratio
The relationship between a person's total income and the amount needed to make one month's mortgage payment.
Income return
The percentage of the total return that is generated by the income from operations of a property, fund or account
Incompetent
An individual who is unable to handle his own affairs by reason of some medical condition (e.g., insanity, Alzheimer's).
Incorporeal right
A nonpossessory right in real estate; for example, an easement or a right of-way.
PREVIOUS AND NEXT TERMS--------------------------------------
Incentive fee
Applies to fee structures where the amount of the fee that is charged is determined by the performance of the real estate assets under management.
Incentive zoning
Zoning that offers incentives to developers, such as retail shops on the first floor of multistory office buildings if a plaza for public use is included.
Incidental recording, delivery, wire, etc. fees
Other costs that are incurred when a real estate loan is closed.
Inclusions
A section of the offer to purchase designed to exhibit any extra items the buyer or seller would like to be included with the real estate.
Income and expense report
A financial report generated by a property manager that details the income and expenses from a property and the amount remitted to the owner.
Income approach
Income capitalization value
The indication of value derived for an income-producing property by converting its anticipated benefits into property value through direct capitalization of expected income or by discounting the annual cash flows for the holding period at a specified yield rate
Income multipliers
Used by most lenders to determine how much can be borrowed. Averages tend to be a single income multiplied by three or joint income multiplied by 2.5.
Income property
Real estate that is owned or operated to produce revenue
Income ratio
The relationship between a person's total income and the amount needed to make one month's mortgage payment.
Income return
The percentage of the total return that is generated by the income from operations of a property, fund or account
This dictionary contains 6433 terms. |
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