Sunday, September 6, 2015

Term of the Day: Economic Depreciation

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September 6, 2015
Economic Depreciation

A measure of the decrease in value of an asset over a specific period of time. This usually pertains to property such as real estate that can lose value due to indirect causes such as the addition of new construction in close proximity to the property, road additions or closures, a decline in the quality of the neighborhood, or other external factors.

Breaking It Down:

In periods of economic downturn and general housing market decline, economic depreciation must be...

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