Capital Recapture is the return of an investor's original investment in a property or business, often through income generated by that asset. It's also known as Capital Recovery.
Capital Recovery refers to the process by which an investor recoups the initial investment in a real estate or business venture. This is typically achieved through revenue generation, cash flows, or sale of the asset. Understanding capital recovery is crucial for assessing the viability and profitability of investments.
Recapture rate in appraisal describes the rate at which an investment is recovered in a wasting asset. It is added to the discount rate to derive the capitalization rate. This rate can be calculated using methods such as straight-line, sinking fund, or annuity.
