When the cost to eliminate functional obsolescence is greater than the increased value of the property, that obsolescence is said to be Economic obsolescence.
Economic obsolescence refers to the lack of price of a real property assets due to factors that are external to the property. not unusual reasons of monetary obsolescence encompass a exchange in plane flight patterns, expanded crime costs, production of a hectic motorway, construction of a landfill nearby, and so on.
Economic Obsolescence, within the context of real estate, is the depreciation in the cost of a assets due to outside factors which are out of doors the control of the proprietor. As such, financial obsolescence is usually considered irreparable, as the owner has little to no have an impact on over those outside factors.
“Obsolescence” is the term used to consult some thing that is either obsolete, or no longer consistent with market requirements. because it relates to a business real estate investment, there are 3 kinds of obsolescence: purposeful, financial, and physical.
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