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The land can appreciate if the area is desirable. Especially if local laws make it very difficult to build more. The structure always depreciates and maintenanc
by supertrope 3y ago
The land can appreciate if the area is desirable. Especially if local laws make it very difficult to build more. The structure always depreciates and maintenance must be done to offset it.
- hef19898 3y agoDeprecation on real estate is different from maintenance costa being spread out over time. Why do people always mix accounting rules for corporations, rules they don't understand, with private finacials? Heck, even professional real estate investors don't depreciate real estate values in thwir books, houses and appartments aren't cars or machines, they fall under the invesment category and are valuated at market rates...
- supertrope 3y agoCare to explain the difference?
- antisthenes 3y agoWhile the structure may deteriorate physically, it is not always a given that it depreciates in accounting terms. My US property was just hit with an increase in the building value to the tune of 25%, I assume to account for the increased labor/material/COVID inflation costs.