4 ms·
> it's not a depreciating asset Yes, they depreciate, and much faster than you imagine before you have seen it. This can be experienced in buildings in depopul
by yobbo 5y ago
> it's not a depreciating asset
Yes, they depreciate, and much faster than you imagine before you have seen it. This can be experienced in buildings in depopulated towns that have been vacant for only a few years. Houses that are not heated/vented/repainted/repaired become complete write-offs in just a few years. (and remodelling bathrooms and kitchens doesn't count.)
Maintaining a house at equilibrium is a negative cash flow that grows over time.
The same is true for infrastructure such as roads, water, sewage, and so on.
- DeathArrow 5y agoIt depends on how and what the house is made from. A house in Europe is built to last longer, using bricks and concrete. The roof is made of ceramic tiles. It still needs maintenance but less of it and less often. An American style home is likely built from wood panels. It takes more money to maintain but it can be built cheaper. Like with anything you can chose from trade offs.