Why does the value of a house appreciate, while the value of a car depreciates?

Answer 1

Wear and tear on a car overtakes any appreciation in value.
A house, while still subject to wear and tear can still appreciate from other factors... proximity to other locations, neighborhood, etc.
That's why your house if your most-important investment... and asset.

Answer 2

I learned that a car depreciates $5.000 within 1 year. As for the house to appreciating is not true it depends on the neighborhood and the condition of the house in order for it to appreciate now I don't know how old you are but back in the days if a colored family moved into a all white neighborhood they said that the houses would depreciate along with other factors. Now section 8 is making the houses depreciate and that's controled by the government. Getting back to the cars it was said that it is best to look for a good used car instead of a brand new one.But you must do some extensive homework and know what your talking about when you go in to deal.

Answer 3

the value of building also depreciates like that of a car. Depreciation depends on the
life of the asset. Both building and car are assets. However, since the building rests
on land , and land is a natural gift, which cannot be valued in terms of money, as such
it cannot be depreciated. As such, the depreciation of building is offset by the increase in the value of land. also the land value rises proportionately much more than
the depreciation of buildings.

Answer 4

The value of the car depreciated because of its salvage nature and it is a personal property that can be destroyed anytime.
The value of house always appreciate because it is a real property, though the house could be demolished but land remains there, where you can build a structure again. Therefore, actually the value of land appreciate and not for the structure.

Answer 5

A house itself does not actually appreciate. What appreciates is the value of the land the house sit on. That is why a "mobile home" does not appreciate since it does not reside on a permanent foundation.

Cars, generally, depreciate since they are machines that will eventually stop working. The only cars that appreciate are "collector cars" that they mechanical depreciation outweighs the emotional appreciation.

Answer 6

I hope that you know that population increases day by day & modernization is taking place at a fast rate.And mainly a house is not a subject to wear & tear.So the price of a house appreciates.The car is subject to wear &tear , constant use which makes it depreciate . The common sense is a twenty year old well kept house can be sold , but do you expect someone to buy an old car with old engines which do not work properly.

Answer 7

Housing is a necessity and can be maintained to a liveable standard for years and the land value improves with capital gains. Cars however eventual give up the ghost unless some 'motor nut' decides to restore it and spends a fortune.

Answer 8

The land value, cost of construction overtakes the reduction in value due to spent life of a building, where as, in the case of a car, wear and tear, outdated features, reduction in fuel efficiency overtakes the proportionate incremental resale value compared to newer models.

Answer 9

it is very simple as you can create any no. of cars but you cannot create the existing land.A land has no wear and tear like a car.Further people are interested to buy always new brands of cars.Hence there is depreciation for cars.

Answer 10

As the house sites are limited and the car production can be increased and increasing