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People forget that houses depreciate. It's the land that appreciates.
by xapata 5y ago
People forget that houses depreciate. It's the land that appreciates.
- seoaeu 5y agoThis isn’t true in all markets. Higher labor costs (for instance, caused by higher rents…) makes it more expensive to construct new homes. That makes any existing homes more valuable, potentially even accounting for depreciation
- rbanffy 5y agoThe cost of replacing a house appreciates, but a new house has higher value than an old one.