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Band of investment method
Capitalization rate is the rate of interest that is considered a reasonable return on the investment used in capitalization net income to determine the value of the property. The band of investment method is a method of determining the capitalization rate by apportioning the rate between a return rate on invested capital and the interest rate on outstanding loans against property.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Real estate investment
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