Definition of Asset Appreciation
What does the term "asset appreciation" mean? What is the definition of the term "asset appreciation"?
Asset appreciation occurs when the value of an asset increases over time. Asset appreciation is the opposite of asset depreciation, which occurs when the value of an asset falls over time (for instance, most vehicles will depreciate over time).
Examples of assets that may appreciate over time: real estate, precious metals, art, stocks
For instance - let's say that you purchase a home in Florida for $250,000.
Over the next five years, the value of the home steadily rises. You have the home appraised and it is found to be worth $350,000.
This means that your asset has increased (or appreciated) $100,000 in value, which is a pretty nice return on your investment.
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