Real estate appreciation refers to the increase in the value of a property over time. It can be influenced by a variety of factors including market demand, location, inflation, and property improvements. Appreciated value can enhance investment returns for property owners.
A method of dividing real estate improvements into various parts such as the roof, plumbing, electrical system, and shell, and then depreciating each component separately for tax purposes.
Leasehold improvements refer to any changes or additions made to a rental space by a tenant that are intended to enhance or adapt the space for their particular use. These modifications are typically attached to the property, involve investment in fixtures or installations, and must comply with the terms of the lease agreement.
Raw land refers to undeveloped land that lacks improvements such as buildings, utilities, streets, drainage, and landscaping. Often, raw land is purchased for development purposes, such as constructing residential subdivisions or commercial properties.
