income approach definition

income approach

Method of arriving at the appraisal value of a property on the basis of its opportunity cost. It compares the net income the property would earn if rented out over its remaining useful life with the income that could be earned if the amount of its purchase price was invested in ventures of comparable risk. Also called income capitalization approach. See also cost approach and market approach.

income approach is in the Accounting & Auditing, Banking, Commerce & Finance and Real Estate & Buildings subjects.

income approach appears in the definitions of the following terms: appraisal value, appraisal approach, income capitalization approach, cost approach and market approach

income approach appears in these other term: adjusted net income approach

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