4 ms·
There are three things at play: 1. Value of land 2. Value of building in perfect order 3. Lost of value of building due to wear/tear etc. If building/trades c
by quickthrower2 8y ago
There are three things at play:
1. Value of land
2. Value of building in perfect order
3. Lost of value of building due to wear/tear etc.
If building/trades costs are rising #2 can rise too while #3 will counteract it, and it depends how much money is put into maintenance and renovations.
Notwithstanding cultural issues with old houses.
- ska 8y agoSee the "almost" in "almost always". You can reduce the depreciation of a depreciating asset by putting money into it, sure, but that doesn't counter the point. I agree there may be some weird inversions due to a spike in labor and/or material costs - but you wouldn't want to bet on it. The usual case is they are just losing value, and requiring injections of cash periodically.