BTC_P2P on Nostr: No matter how well maintained there are components of the house that deteriorated and ...
No matter how well maintained there are components of the house that deteriorated and degrade - windows, foundation, insulation, HVAC, plumbing and septic. Eventually all will have to be replaced, at least partially and often completely. The wood the house is built with will not last 200 years. Modern commercial wood will last 100 years max even if very well cared for.
The only reason the land / real estate appreciates is because the purchasing power of the unit of account is perpetually debased. Otherwise real estate would not appreciate, but instead depreciate like it should. Same as a car or any good that depreciates in quality with time / use.
If I buy a nice parcel of land and build a house on it, in 100 years, that house needs to be torn down and a new one rebuilt. That’s a detriment to the value of the land. Houses are depreciating assets.
The only reason the land / real estate appreciates is because the purchasing power of the unit of account is perpetually debased. Otherwise real estate would not appreciate, but instead depreciate like it should. Same as a car or any good that depreciates in quality with time / use.
If I buy a nice parcel of land and build a house on it, in 100 years, that house needs to be torn down and a new one rebuilt. That’s a detriment to the value of the land. Houses are depreciating assets.