Talk:Capitalization rate
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Seems like there is contradictory information on the page.
Under the "Change in asset value" section, the article reads:
..."To get the rate of return on an investment, also known as an internal rate of return, the real estate investor adds (or subtracts) the price change percentage from the cap rate."
In the next section, "Relationship to similar terms", the article reads:
"A capitalization rate, or cap rate, does not equal the rate of return on an investment in real estate."
Can someone please clarify this.
Thanks,
````FK