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House appreciation is a bad thing. Outside well inflation of replacement, but even there should be some depreciation with wear and tear and aging... Rents not
by Ekaros 1y ago
House appreciation is a bad thing. Outside well inflation of replacement, but even there should be some depreciation with wear and tear and aging...
Rents not covering most of amortization would make lot more reasonable system to live in.
- margalabargala 1y agoHouses themselves don't really appreciate in and of themselves, not the way a stock might. It's more that the land price goes up, as does the cost of replacement due to materials and labor prices also increasing. If you have two identical lots side by side, and you build a house one one and 10 years later build the identical floor plan next door, they will not sell for particularly different prices.