Why isn’t it treated similarly to a house?
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On top of everything that’s already mentioned one thing to keep in mind is that when you buy a new car you can pick between a bunch of options and customise it to your liking. Being able to customise these things is part of the reason someone would buy a new car over a used car and it’s unlikely you’ll find someone who agrees 100% with the choices you’ve made.
Say for instance you’ve bought a blue car with grey interior and the top of the line stereo and you try to sell it to someone who don’t car about the stereo – they’ll probably not want to pay extra for the stereo just because you paid so you get more depreciation there.
You have the same issue with house modifications where it can be hard to recover the cost of upgrading the kitchen or the bathroom in a sale because the buyers might prefer something else.
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