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If we actually built properly, people would not expect their real-estate investments to appreciate so much. Barring exceptional circumstances, housing is a depr
by anthonypasq 3y ago
If we actually built properly, people would not expect their real-estate investments to appreciate so much. Barring exceptional circumstances, housing is a depreciating asset, it gets old. People in this thread have brought up Japan, no one there assumes their house is going to triple in value, its going to reach 0, at which point it will be rebuilt.
- Night_Thastus 3y agoThe problem is that now people have become accustomed to housing prices going up over time. You can blame any number of factors as to why this happened, but it's here now. And because of that, homeowners in the US will fight tooth and nail to stop anything that depreciates their houses.
- ClumsyPilot 3y agothat's the definition of vested interest it also does not bebefit the average homeowner - your house is worth more, but you cant sell ut or youll have nowhere to live
- Night_Thastus 3y agoNot true - because people use it as a form of retirement. By selling a house, they can often live the last years of their life off of the lump sum. It's become very frequent in the US. Houses are appreciating assets, investment opportunities and retirement planes - not homes.
- freetinker 3y agoHousing (the built structure) arguably is a depreciating asset. However, the land upon which it is built, by and large, is an appreciating asset.