From: Jas
Buildings appreciates, land appreciates
Why?
Just because I get a piece of paper from the ATO saying I can depreciate a building, why do they depreciate? Is someone saying that it costs less to replace it over the years? No, because of inflation, buildings actually cost (roughly) the same or more.
Is it because they need constant repair? No, because I am also allowed to deduct the cost of the repair by the ATO.
Is a beautiful heritage building worth less over time, or does it appreciate in value? If it’s maintained, its worth more and more.
So why?
Conversely, dirt appreciates. Again why? The old saying that there aren't making any more of it doesn’t matter. What happened on the gold coast and in Manhattan wen they ran out of land? They build up instead. We got lots of air to build into.
Supply and demand? That causes a fluctuation in prices sure, but why should they (generally) keep going up?
Jas
To paraphrase Charles Mackay – By the vile arts of stock-jobbers!
Buildings appreciates, land appreciates
Why?
Just because I get a piece of paper from the ATO saying I can depreciate a building, why do they depreciate? Is someone saying that it costs less to replace it over the years? No, because of inflation, buildings actually cost (roughly) the same or more.
Is it because they need constant repair? No, because I am also allowed to deduct the cost of the repair by the ATO.
Is a beautiful heritage building worth less over time, or does it appreciate in value? If it’s maintained, its worth more and more.
So why?
Conversely, dirt appreciates. Again why? The old saying that there aren't making any more of it doesn’t matter. What happened on the gold coast and in Manhattan wen they ran out of land? They build up instead. We got lots of air to build into.
Supply and demand? That causes a fluctuation in prices sure, but why should they (generally) keep going up?
Jas
To paraphrase Charles Mackay – By the vile arts of stock-jobbers!
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