3 ms·
>Is there anywhere that doesn't consider a house a depreciating asset? The USA
by CapstanRoller 3y ago
>Is there anywhere that doesn't consider a house a depreciating asset?
The USA
- onlyrealcuzzo 3y agoYes, but technically - houses deprecate 1/27th of their value according to the tax code. So, although no one expects house prices to go down - there is an implicit understanding that the actual house depreciates - even if inflation is offsetting that and the land underneath it is pumping the total value up. Lets imagine the cost to build a house goes up 3% per year - if your house deprecates 3.7% per year - it would only go down .7% in nominal terms (3.7% in real terms). If the value of the land is 50% of the "home" value, and that appreciates by 6% - then your "home value" goes up in nominal terms & real terms - but not as much as it would have if the house didn't need maintenance (depreciation).