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>Newer buildings come with updated building codes and benefit from technological advances Lol. The "updated code and technical advances" are part of what keep

>Newer buildings come with updated building codes and benefit from technological advances Lol. The "updated code and technical advances" are part of what keeps the value of existing structures from losing value. Between ever increasing setback rules and asinine code changes that preclude features people actually want (like electrical outlets that are easy to use) and waste ever increasing space (look at the code for stairways and doorway sizes over the years). For everyone getting suckered into a modern spec home there's someone else buying something because you can't build whatever that something is anymore. This is even more true with commercial operations where you can buy a facility but you couldn't get a new facility through the permitting process.

lotsofpulp 6y ago
> Lol. The "updated code and technical advances" are part of what keeps the value of existing structures from losing value. That is not evidenced by transaction data. There’s a few, mostly urban areas where older builds are valued due to not having to conform to modern codes, but certainly not representative of all existing structures versus new. The easiest evidence I can offer is the IRS letting you deduct depreciation for buildings. Surely they would only do this if existing structures did lose value.
- michaelmrose 6y ago
  Tax cuts are gifts for the wealthy. Starting with the premise that they are logical is extremely dubious. Older buildings may be deemed worth less on average partially because not all are well maintained and many may trivially hide expensive problems due in part to defects in workmanship and in part due to defective or absent maintenance. People will pay a premium not to deal with anyone else's problems or even a chance of same.
- kube-system 6y ago
  The IRS sometimes lets you depreciate that portion of a rental property which is the building itself or improvements, sure... but if we’re talking about homes - almost all of those buildings are physically attached and sold with land which is a component of those transactions. In practice, people continually put money into permanent homes to update it, because their property as a whole is widely seen as an investment. It’s a package deal. Mobile homes have none of this. They are not attached to land. The transactions in which they are transferred are not connected to land. They’re usually titled, and often sit on rented land.

lotsofpulp 6y ago

> Lol. The "updated code and technical advances" are part of what keeps the value of existing structures from losing value. That is not evidenced by transaction data. There’s a few, mostly urban areas where older builds are valued due to not having to conform to modern codes, but certainly not representative of all existing structures versus new. The easiest evidence I can offer is the IRS letting you deduct depreciation for buildings. Surely they would only do this if existing structures did lose value.

michaelmrose 6y ago
Tax cuts are gifts for the wealthy. Starting with the premise that they are logical is extremely dubious. Older buildings may be deemed worth less on average partially because not all are well maintained and many may trivially hide expensive problems due in part to defects in workmanship and in part due to defective or absent maintenance. People will pay a premium not to deal with anyone else's problems or even a chance of same.
kube-system 6y ago
The IRS sometimes lets you depreciate that portion of a rental property which is the building itself or improvements, sure... but if we’re talking about homes - almost all of those buildings are physically attached and sold with land which is a component of those transactions. In practice, people continually put money into permanent homes to update it, because their property as a whole is widely seen as an investment. It’s a package deal. Mobile homes have none of this. They are not attached to land. The transactions in which they are transferred are not connected to land. They’re usually titled, and often sit on rented land.