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Income capitalization value
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
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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.
Discounting
To sell at a reduced value; the difference between face value and cash value.
Annual
Any kind of plant that must be planted every year.
Yield
The interest earned by an investor on his investment (or bank on the money it has lent).
Rate
Percentage a borrower pays for the use of money, usually expressed as an annual percentage.
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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
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.
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.
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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
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.
Income capitalization value
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).
This dictionary contains 6433 terms. |
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