The less that a property is used, the less it depreciates.
This is great information. It tells us that the less value we put into something the less it depreciates. Think about it this way: if you buy a $5,000 house, you have $5,000 worth of value. If you bought a $1,000 house, you have $1,000 worth of value. If you bought a 1,000-dollar house, you have $1,000 worth of value.
Well, it doesn’t tell us much, really. The concept of depreciation deals with the decrease in value of a product based on how long it has been in use. It does not talk about money itself, but rather about the amount of money someone has to spend in order to create an equivalent amount of value. For example, if you bought a 4-bedroom house with a value of $100,000, you only spent $4,000 to buy it.
If you’re going to buy a house with a value of 100,000, you can probably buy a 4-bedroom home with 5,000, and when you buy 50,000, you can’t buy it.
That is why if you see the housing market in general, you see houses that are going for less than a million. If you ask someone how much a house is worth, they might say, “a million bucks.
In the case of depreciation, the amount of money you spend to actually create the same amount of value in your new home is essentially equal to the amount of money you spent to buy it. Now, if you don’t spend any money at all, that same amount of value in your new home will be worth 0. So basically, if you bought a house for $100,000, you need to spend $100,000 to get a house worth $100,000.
I can tell you that all those numbers are pretty arbitrary. People will give you different answers depending on how you ask them. There is no such thing as a standard price for a house, because, like most things in life, that’s a matter of personal preference. The amount of money you actually need to spend on a house is always going to be a very personal matter.
I can’t say that I can tell you how much you need to spend on a house with an absolute certainty, but I can say that its very unlikely that a house will be worth 0 when you buy it. So you probably need to buy a new house. I will say that the 0 depreciation of houses is also a bit of a myth too, because you will still have a lot of money left over.
It’s also a myth that if you put money and time into a house, that the money will actually be worth it. The real money is in the land you live in.
Land is another important ranking factor. Your home is an investment. You should get an appraiser to help you take a look at its value. But it’s also an investment in time. If you want to make sure you have a nice home that you don’t have to worry about depreciation, put some time into it. I’m not saying you should always buy a new house, but if you are comfortable with your existing home, make it a point to preserve it.