Capital Improvement

AAA

DEFINITION of 'Capital Improvement'

The addition of a permanent structural improvement or the restoration of some aspect of a property that will either enhance the property's overall value or increases its useful life. Although the scale of the capital improvement can vary, capital improvements can be made by both individual homeowners and large-scale property owners.

INVESTOPEDIA EXPLAINS 'Capital Improvement'

For example, if Jack buys a new hot water heater and tool shed for his property, both would be considered capital improvements to his house. Similarly, the creation of a new public park in the downtown area would also be considered a capital improvement for the city. In both these cases, the new additions would make the respective properties more valuable.

RELATED TERMS
  1. Betterment Insurance

    Betterment insurance refers to insurance coverage that a tenant ...
  2. Future Capital Maintenance

    A term used to account for future expenses that a company expects ...
  3. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
  4. Land Value

    The value of a piece of property, including both the value of ...
  5. Personal Property

    A type of property which, in its most general definition, can ...
  6. Tangible Asset

    Assets that have a physical form. Tangible assets include both ...
Related Articles
  1. To Rent Or Buy? There's More To It Than ...
    Personal Finance

    To Rent Or Buy? There's More To It Than ...

  2. To Rent Or Buy? The Financial Issues
    Home & Auto

    To Rent Or Buy? The Financial Issues

  3. A Tax Primer For Homeowners
    Taxes

    A Tax Primer For Homeowners

  4. 5 Tricks For Lowering Your Property ...
    Taxes

    5 Tricks For Lowering Your Property ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center