3 ms·
The land under the house doesn’t depreciate like the house does. Can always put a new house up. Hard to get new land, so unless regional demand goes down it’s
by jleyank 4y ago
The land under the house doesn’t depreciate like the house does. Can always put a new house up. Hard to get new land, so unless regional demand goes down it’s a value-growth proposition.
- robertlagrant 4y agoIndeed. And the neighbourhood, the schools, the nearby jobs or leisure activities or woodland or whatever it is that makes that location valuable also don't change, or not as quickly. If they get better, does the house appreciate? Does it also appreciate if I paint my house? If so, why not let the market calculate that depreciation or appreciation? What's the point of second-order accounting when you can just expose the asset on a free market?