The residual value of real estate refers to the value of building materials left after demolition and cleaning after long-term use and loss of use value. Cleaning costs are the labor and mechanical costs paid for the demolition and cleaning of scrapped dangerous houses. As an additional cost of housing use, it should be included in the cost. Generally, the residual value after deducting the cleaning cost is the net residual value, referred to as residual value.

The depreciation period of investment real estate is generally more than 20 years, and the residual value rate is less than 5%.