Real Estate Investing

Capital Improvement

Definition

What is Capital Improvement?

A substantial upgrade that extends useful life, increases value, or improves functionality.

Example in practice

Installing a lift is treated as a capital improvement.

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Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

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