6 ms·

What about an old mouldy home in a super desirable location? Also is brand new outweigh renovated?

• analog31 8y ago
  Tear it down and build it over, especially if you're an investor and can buy a bunch of mouldy homes on a block. Example in the US is smaller suburban houses that happen to be located near commuter rail stations. They are torn down and replaced with new, bigger houses. The neighborhood across the tracks from my house is another example: Doctors and professors have bought and "renovated" all of the smaller houses. I notice something similar with hotels. My experience in a hotel is 100% proportional to the age of the hotel. The newer the better. Hotel owners rarely renovate unless they are in super prime downtown locations. They just let the hotel deteriorate while lowering their room rates while someone builds a new hotel next door.
• twblalock 8y ago
  In Japan, it's common for the land to be worth a lot of money and the house on the land to be worth nothing. New buyers frequently tear down the house and build a new one. After a few decades of ownership, it is not unheard of for people to move out of their house, tear it down and replace it with a new one, and then move back in. I guess they rent a place to live while this is happening. In Japan particularly, this is a legacy of the poor quality of houses built in the early 20th century and the period after WWII when everything was slapped together as quickly as possible. They really were worthless after a decade or two because they were not built to last. This seriously damages the incentives for maintaining existing homes, because they are going to be worthless in 10 years, why bother?