California Real Estate Exam

Category - Real Estate

Which of the following items is usually considered to be a cost of home ownership?

  1. Land depreciation
  2. Improvement appreciation
  3. Amenity value
  4. Interest lost on the owner’s equity
Explanation

Answer: D. The interest that is lost on owner’s equity is usually identified as lock in equity. This term applies to the fact that the owner cannot utilize the funds for other investment purposes.

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