What is capital appreciation?

The capital appreciation of a property is the growth in market value of the asset over time.

For example, if a property is acquired for $1,000,000 USD and the acquisition costs are $100,000 USD, the total amount is $1,100,000 USD. Assuming that the property is sold after several years at a price of $1,500,000 USD (i.e., the net selling price), then the capital appreciation is $400,000 USD, or 36.4% (i.e., $400,000 USD / $1,100,000 USD).

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