There was a question yesterday that generally stated cars lose their value so fast because people don’t know what the previous owner did. That’s fair, but why does that not relate to houses?
In: Economics
A car and a house are both depreciating assets. That means they lose value over time.
Land, on the other hand, is a finite resource and can go up in value over time. It doesn’t break or need maintenance in the same way that a car or house does.
So when you buy land with a house, you’re buying two things: the land (which can go up in value) and the house (which will cost you money every year to maintain and may still go down in value).
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