If houses depreciated like cars,wouldnt that solve most economic issues?
- Thread starter Still Benefited
- Start date
Gritsngravy
Superstar
Now that u brouhgt it up, how is housing increasing? Shouldn’t older buildings have less value?This is the best reason google had as to why they dont depreciate
"A house is far more durable than a car and does not out of date every few years for 10% of its purchase price you can renovate a house and get 25–30 years value from those renovations."
If a bunch of homes were built in the 1980s and their original values were 80K. With depreciation, the value should be around 50K-60K now. The value of those homes shouldnt all be 120K. If you rennovate it,at best it should come back to its original value,maybe slightly higher. But this is why economics is a scam
And for the people who say it’s the land that appreciates, are we sure land is being valued properly?
Older buildings are usually in better locations. Resources like access to public transportation, walking access to restaurants and leisure activities, short commutes to work etc…..are a priority now and living quarters with those local amenities are usually older.
Land next to nothing will not be worth more than land where lots of people with disposable income congregate.
Day_Walker
All Star
Houses do depreciate in value. It's the land they're sitting on that increases.
Gunz&Butta
All Star
Exactly, we can't make any more land without trying to reclaim the sea/ocean.
asked DeepSeek-R1-Lite "If houses depreciated like cars,wouldnt that solve most economic issues?" and this is the answer it gave after "thinking"
If houses depreciated like cars, it would fundamentally change the housing market and have wide-ranging economic effects. Here's an overview of the potential consequences:
If houses depreciated like cars, it would fundamentally change the housing market and have wide-ranging economic effects. Here's an overview of the potential consequences:
- Affordability and Demand:
- Lower Prices: Houses would lose value over time, potentially making them more affordable for first-time buyers.
- Shift to Renting: People may prefer renting over buying if homes are no longer seen as appreciating assets, which could stabilize housing prices but might lead to lower-quality rental housing if landlords don't invest in maintenance.
- Economic Impact:
- Reduced Consumer Spending: Home equity is often used for large purchases, so depreciating homes could lead to decreased consumer spending.
- Impact on Construction and Finance: A decline in housing values would hurt the construction industry and mortgage lenders, possibly leading to higher interest rates or stricter lending conditions.
- Wealth and Inequality:
- Wealth Losses: Homeowners would see their net worth decrease, which could exacerbate wealth inequality, particularly for those who cannot afford to buy before values drop.
- Retirees Affected: Retirees relying on home equity for income would be negatively impacted by falling house values.
- Government and Policy:
- Lower Property Taxes: Depreciating homes would reduce property tax revenues, affecting local government budgets for public services.
- Potential Regulation: Governments may intervene with policies to stabilize the housing market, similar to interventions seen during financial crises.
- Psychological and Social Effects:
- Homeownership Perception: Homes are more than financial assets; they represent security and emotional attachment. A shift to depreciation could change societal attitudes toward homeownership.
- Stress and Quality of Life: Declining asset values could increase financial stress for homeowners.
- Environmental and Long-term Sustainability:
- Maintenance and Upgrades: Decreasing property values might reduce incentives for maintenance and upgrades, potentially leading to more demolitions and environmental strain.
- Construction Practices: There could be a push for more durable, longer-lasting construction to combat depreciation.
- Financial Markets and Investment:
- Impact on Investments: Housing is a key part of many investment portfolios. Its depreciation could shift investment strategies toward other assets like stocks.
- Insurance and Mortgage Financing: Insurance models and mortgage terms might need to change to account for depreciating collateral.
Deep Seek? More like Deep State. Clearly it has a bias,and negative spin on this to protect the status quo. Or perhaps A.I isnt privy to seeing anything but short term.
Its completely missing out on the fact that depreciating houses,would create savings. So how in the world would it decrease consumer spending and stress out home owners
People would be under less financial stress,and need to borrow less from banks. As well as being far less likely to default or rack up crippling interest and fees. This is a problem for the banks.
If anything the argument you would have against it would probably be inflation over time. People would pay off their homes faster. People would be able to purchase a new home and rent out the old one for disposable income.
And this would actually make more sense than the current model. People who have actually paid off their home are renting their homes out. Rather than people taking out loans to "buy",but then rent out homes they dont actually own. Its a natural progression rather than people who dont own homes,using real estate as an investmemt vehichle.
Plus i predict it would allow people to retire sooner. And with the ability to rent out their purchased home,it would allow them to spread out across the country wherever they choose. This potentially would help build up the vacant nothingness all accross middle america. Expanding populations,and prevent the same cities from being overly populated for work. Earlier retirement gets people out of the job market faster. Lower housing allows more option for women to stay at home,which means more babies. More babies also mean you would need more building(smarter building),more businesses. Companies could also afford to hire more people,as their really wouldnt be a need to keep raising wages. Would it hurt short term? Yes but thats how progress works sometimes
I basically solved America on a whim,so A.I lost this round. But of course the elites dont want things to actually be "fixed". How else would they throw money around to pretend like they are fixing things
Depreciation doesn't just happen.
Value is determined by the consumer.
Value is determined by the consumer.
and the state/city. I just had to re-do the paperwork for the assessments.....taxman coming for my ass
Richard Glidewell
Superstar
This whole thread reads like a I'm more introspective when I'm high vibe but in reality is just some body passes out drooling pissing themselves while hallucinating grandeur........
