The return of principal at the end of ownership is known as return of investment or ______.

The term that describes the return of principal at the end of ownership is capital recapture. This concept focuses on the idea that when an investor sells an investment property, they regain the initial amount invested, essentially 'recapturing' the capital they put into it. This is an important consideration for real estate investors, as it reflects the financial performance of the investment over time and allows them to measure the effectiveness of their investment strategy.

In the context of real estate appraisal, understanding the return of investment is crucial for evaluating the profitability of a property and making informed decisions about buying, holding, or selling assets. Capital recapture plays a critical role in not just measuring profitability but also in assessing the overall return on investment, which includes both the income generated during ownership and the recovery of the initial investment upon sale.

The other concepts listed do not accurately describe this phenomenon. For instance, capitalization typically refers to converting income into value or determining investment return rates. Dividends refer to distributions of earnings to shareholders in a corporation, and net operating income is the measure of income generated by a property before expenses and taxes—not the return of the principal investment. Understanding these distinctions is important for successful investment analysis and appraisal.