I have a hard time understanding this consept.
a house can only last so long. and when is a house to old and a bad investment?
2006-11-17 13:13:10 · 9 answers · asked by mburleigh8 5 in Business & Finance ➔ Renting & Real Estate
The previous posters are correct. The house itself depreciates however the land increases in value. Think of the property as a car affixed to the land. Once, a house reaches the end of it's useful life it can only be used for sold for land value. A house can last for a long time i it has been properly maintained and can extend it's useful life.
2006-11-17 22:08:13 · answer #1 · answered by tianaramal 4 · 1⤊ 0⤋
Inflation...always keeps the price up. So it really is never again worth less than what was paid for it .....unless severely damaged or destroyed such as floods or fires when body's of water change course drastically and you may have to wait a whole generation to fix these acts of nature. But the land never depreciates because they are not MAKING any more land any more. a HOUSE IS ACTUALLY NEVER TO OLD AND A BAD INVESTMENT. Why? Because it can always be an investment into the future ( one generation ) when the younger generation more adventurous, willing to take risk, more positive because they do not yet know how hard life can be etc.etc. are ready willing and able to take over the ruling class from the previous generation.
2006-11-17 13:32:25 · answer #2 · answered by oldtimer 4 · 0⤊ 0⤋
Investing into a old house,is not a bad investment, it's the property you are buying as " Antique".House is not like a machinery which on runs going dull.Where the House when some one living inside it's works better,so the depreciation is not allowed in other words it's a private residential property.It's not a commercial property.
2006-11-17 13:19:45 · answer #3 · answered by precede2005 5 · 0⤊ 0⤋
plenty relies upon on the section the place the home is and how plenty they're merchandising for. on occasion the folk who're merchandising the living house prefer to sell the valuables for that quantity without seeing what their opposition is the place they like that quantity to pass to there next living house. loopy precise, even with the undeniable fact that it occurs. I observed a house final weekend that became into merchandising for over $4 hundred,000 in a community the place it looked the residences contained in the section might sell for 0.5 of that. residences take exhilaration in with the aid of fact of what a client is prepared to pay for the living house and residences depreciate for the comparable reason. with the aid of modern-day marketplace, that's a brilliant time to purchase a house. wish this permits!
2016-10-04 02:22:00 · answer #4 · answered by vishvanath 4 · 0⤊ 0⤋
Houses go up in value because the dollar goes down in value. Not the only factor, but one some people don't think about.
Also, there is no such thing as a bad investment...only bad investors.
2006-11-17 14:04:21 · answer #5 · answered by Mr. E 1 · 0⤊ 0⤋
You are really buying the land. It is obviously worth more with a house; however, that is why they say "location, location, location." Also, most people own their homes for a long time so when they sell the prices of things have gone up as well as average salaries.
2006-11-17 13:45:47 · answer #6 · answered by Toto 2 · 0⤊ 0⤋
Property only depreciates on paper. If it is consistently well-maintained, it doesn't depreciate physically. The key is to stay on top of your repairs and maintenance.
2006-11-17 13:19:00 · answer #7 · answered by Bill P 5 · 0⤊ 0⤋
Price of living goes up not down. Land value goes up. Lumber goesup.cost more to build each year.Thats why homes appreciate.
2006-11-17 16:00:46 · answer #8 · answered by sassy 1 · 0⤊ 0⤋
Because it's not the house that appreciates, it's the land.
2006-11-17 14:01:41 · answer #9 · answered by Justin 3 · 0⤊ 0⤋