Comments on: Is our new house a depreciating asset? http://advancedpersonalfinance.com/is-our-new-house-a-depreciating-asset/ Moving beyond the basics Wed, 19 Nov 2008 16:42:35 +0000 http://wordpress.org/?v=2.2.2 By: Will L http://advancedpersonalfinance.com/is-our-new-house-a-depreciating-asset/#comment-38133 Will L Thu, 13 Nov 2008 00:31:59 +0000 http://advancedpersonalfinance.com/is-our-new-house-a-depreciating-asset/#comment-38133 Okay, im playing devils advocate... And saying that I don't think many houses last forever, so I think it is going to be a depreciating asset (hopefully not in the buyers lifetime). Amagine living in China or Japan and taking out a generation mortgage, where your children will be paying the debt on a house that has rotted away.. What is the value of your house when it has become inhabitable? It is obviously less then what it was when you had bought it. No house will last forever. Okay, im playing devils advocate… And saying that I don’t think many houses last forever, so I think it is going to be a depreciating asset (hopefully not in the buyers lifetime). Amagine living in China or Japan and taking out a generation mortgage, where your children will be paying the debt on a house that has rotted away.. What is the value of your house when it has become inhabitable? It is obviously less then what it was when you had bought it. No house will last forever.

]]> By: Bret Frohlich http://advancedpersonalfinance.com/is-our-new-house-a-depreciating-asset/#comment-19975 Bret Frohlich Sat, 08 Mar 2008 22:47:22 +0000 http://advancedpersonalfinance.com/is-our-new-house-a-depreciating-asset/#comment-19975 No, a house is not a depreciating asset, like a car. The real estate market goes up and down, but the trend is usally up, in the long-term. My house quadruppled in value from 1996 to 2007 and now it's headed back down again. Most of that was luck, since I bought my house within one month of the 90s market low. But, if I had bought it a couple of years sooner or later, it still would have been a great investment. I predict that you are going to buy your house and then it's going to drop another 20-30% in the next two years. But, in ten years, you will be sitting pretty and happy you made the investment. No, a house is not a depreciating asset, like a car.

The real estate market goes up and down, but the trend is usally up, in the long-term. My house quadruppled in value from 1996 to 2007 and now it’s headed back down again. Most of that was luck, since I bought my house within one month of the 90s market low. But, if I had bought it a couple of years sooner or later, it still would have been a great investment.

I predict that you are going to buy your house and then it’s going to drop another 20-30% in the next two years. But, in ten years, you will be sitting pretty and happy you made the investment.

]]>