Holding costs, also known as carrying costs, are the expenses incurred by owning and maintaining a property over a period of time until it is sold or put to productive use.
Opportunity cost represents the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. It mainly concerns the analysis of trade-offs and ensuring that the benefits of a pursued action or investment outweigh its associated costs.
Present Value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. PV calculations are fundamental in finance and real estate as they determine what a future amount of money is worth today.
