3 ms·
The article does bury the lede a bit by neglecting to point out that the land retains its value, only the house itself loses value. It is an interesting article
by SOLAR_FIELDS 3y ago
The article does bury the lede a bit by neglecting to point out that the land retains its value, only the house itself loses value. It is an interesting article to an extent in that it points out some fundamental differences between the way the west in general and USA specifically vs Japan think about houses. But it doesn’t really explore the idea beyond that
- freetime2 3y agoThe second paragraph makes a distinction between house and land values: > According to Nomura, a brokerage, the value of the average Japanese house depreciates to zero in 22 years. (It is calculated separately from the land, which is more likely to hold its value.)
- ffhhttt 3y agoIsn’t it about 27.5 years in the US (for accounting purposes)?
- blitzar 3y agoI can not be bothered to do the experiment, but take a US house. Do zero maintenence or updating for 22 years and I expect it will have depreciated towards land value only.
- midoridensha 3y agoOP isn't talking about that. The IRS rules require you to depreciate real estate over 27.5 years.