2007-02-08 05:18:34 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
no one is making any more LAND
2007-02-08 05:21:14 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Actually, the physical structure of a residence does depreciate. Appraisers consider this when valuing a property, and real property depreciation is often taken as an expense for income properties.
What actually appreciates is the market value of the real estate. This is caused by demand in the area. In most cases, market appreciation increases at a greater rate than physical depreciation, thus causing an overall increase in the property's market value.
2007-02-08 07:31:53 · answer #2 · answered by Lisa A 1 · 1⤊ 0⤋
A house's value is determined by SO MANY different factors...some of which have nothing to do with the house itself directly.
Location---a house in Bryn Mawr PA could be worth 2 times more than the exact same house on the exact same size property if it were located in Upper Darby PA...3 to 4 times more if it were in South Carolina instead.
The condition of surrounding properties will effect the value as well....a mansion in a neighborhood that's otherwise full of ranch houses will have less value just for being in a neighborhood of disproportunate house styles.
Also...this is simply the nature of Real Estate...so long as the property has been maintained well, values appreciate faster than they depreciate. It's how the system is.
2007-02-08 05:27:33 · answer #3 · answered by bradxschuman 6 · 0⤊ 0⤋
Not all houses appreciate value...a home's value is determined by several factors, one of which is what are the home's in the area being sold and bought at; real estate will always go up, it may stand still and it may fall a bit...but anyone in real estate will tell you there will always be someone needing to buy a piece of property...whether it's for commercial, residential or agricultural uses and so based on demand for that particular type of property a price can be set...sometimes it appears to the consumer that the pricing is a bit high, but when compared to properties with similar amenities in similar areas you find that mostly pricing is done fairly and comparably.
2007-02-08 05:31:18 · answer #4 · answered by Shannon M 3 · 1⤊ 0⤋
Land. There are different issues, like uncommon gemstones, gold, blue chip stocks (not continuously, heh) antiques, that type of element. Land is the large one. you won't be able to lose even as procuring land. the position human beings lose is on the abode. residences depreciate even as land continuously appreciates, except in quite severe situations like someone construction a parkway next door, or perhaps then the depreciation is in basic terms short-time period.
2016-11-26 02:59:52 · answer #5 · answered by blomquist 4 · 0⤊ 0⤋
what donie said, plus most people do work and updates to their home.
People always need a place to live, but you can get away without having a car!
2007-02-08 05:23:32 · answer #6 · answered by Just tryin' to help 6 · 0⤊ 0⤋
they don't anymore, there are soo many homes for sale the price has come down 30%. only the taxes keep going up/
2007-02-08 05:29:48 · answer #7 · answered by Anonymous · 0⤊ 0⤋