Real Estate Terms [10]

Jun 4, 2011     Posted under: Investment






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Capital Gains: Profits earned from the sale of capital assets

Capital Gains Tax: A tax payable on capital gains resulting from property and other investments

Capital Value: The overall value of a property as distinct from its annual periodic return. Capital value may be established in a number of different ways. In the simplest case, it is calculated by multiplying the annual return (net rent) by the inverse of the yield

Capitalization Approach: This refers to a method of computing the capital value of a property by multiplying its net annual income by the inverse of the capitalization rate. Also known as the investment method of valuation

Capitalization Rate: The yield at which the net income from an investment is discounted to ascertain its capital value at a given date

Capitalization Ratio: The relationship that each security (debt or equity) bears to total debt and equity, less intangible assets, expressed as a ratio

NitiN Kumar Jain

Nitin works in an IT MNC professionally but blogs and owns NKJ Live. He is also the co-owner of a professional start-up ARGHAM BYTES

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