Recapture Rate
Barron's Business Dictionary:
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Recapture Rate
In appraisal, rate of recovery of an investment in a wasting asset. This rate is added to the discount rate to derive a capitalization rate in appraisal terminology. It may be based on the straight-line, sinking fund, or annuity method.
| Recapture Clause, Recapture, Recapitalization | |
| Recapture Rule, Recasting A Debt, Receipt, Receipt Book |
Barron's Real Estate Dictionary:
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Recapture Rate
In appraisal , a term used to describe the rate of recovery of an investment in a wasting asset. This rate is added to the discount rate to derive a capitalization rate in appraisal terminology.
May be based on the straight-line, sinking fund , or annuity method.
Example: A building with a 50-year estimated useful life has a 2% straight-line recapture rate. At a discount rate of 10%, the capitalization rate is 12%.
May be based on the straight-line, sinking fund , or annuity method.
Example: A building with a 50-year estimated useful life has a 2% straight-line recapture rate. At a discount rate of 10%, the capitalization rate is 12%.
| Recapture Clause, Rebate | |
| Recasting, Receiver |
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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