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submitted 9 months ago by shootwhatsmyname@lemm.ee to c/asklemmy@lemmy.ml
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[-] TheSanSabaSongbird 15 points 9 months ago

Accidentally buying a modest house in what at the time was a "distressed" neighborhood because it was all we could afford. 15 years later the neighborhood has been gentrified and is highly desirable. The property has tripled in value and the land is now worth more than the house itself.

Anyhow, it was dumb luck on my part and again, mostly had to do with the place being affordable and relatively close to my wife's parents.

[-] dan@upvote.au 5 points 9 months ago* (last edited 9 months ago)

the land is now worth more than the house itself.

This is usually the case. When the value goes up, pretty much all of the increase is due to the land value increasing. Land is a limited resource that's always in demand, especially in desirable areas. The house itself is actually going down in value over time due to depreciation.

In my area it's not uncommon for at least 70% of the value of a property to be in the land, and the house itself accounts for less than 30% of the value. There's a lot of houses built in the 1940s to 70s in highly desirable areas.

[-] CanadaPlus@futurology.today 1 points 9 months ago

I've never thought about it like that, but it makes good sense.

this post was submitted on 15 Jan 2024
155 points (96.4% liked)

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