Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Capital Improvement

What it is:

In general, a capital improvement is a one-time expenditure for physical assets such as buildings, land, construction, landscaping or major equipment.

How it works (Example):

Let's say Town XYZ wants to refurbish ABC Elementary School. It intends to pursue several capital improvements: Build a new wing for the fifth-graders, replace the playground, install better security systems, and redo all the plumbing.

Why it Matters:

This term usually refers to government or municipal projects. Often, the goal is to improve the quality of life in the town, attract more tax-paying business and comply with new building codes or laws.