s a loan is paid down the homeowner aspires to having a market value which is more than the price that he paid for the property. What best describes the interest or value left after all liens and encumbrances have been paid? Avulsion Equity Leverage Tax shelter

s a loan is paid down the homeowner aspires to having a market value which is more than the price that he paid for the property. What best describes the interest or value left after all liens and encumbrances have been paid? Avulsion Equity Leverage Tax shelter

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section16.2: Take Advantage Of Beneficial Tax

Problem 2CC

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Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

Question

As a loan is paid down the homeowner aspires to having a market value which is more than the price that he paid for the property. What best describes the interest or value left after all liens and encumbrances have been paid?

Avulsion

Equity

Leverage

Tax shelter

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