(07-17-2023, 02:54 PM)Snarl Wrote: When I was a kid, my mom bought a house 3BR/2BA home for $24K. That exact same home is worth over $300K today.
Just how in the Hell can that be? A house should be subject to the same decline in value as anything else in this world. There's no way it should appreciate in value to that degree. It simply is NOT worth as much as it once was .... unless massive improvements have been made.
There's a few reasons. Mainly, we keep creating more people, but no one is creating more land. As a matter of fact, a growing population means we need more land for farming and more land for businesses. Supply is decreasing as demand is increasing. That's how prices go up.
Additionally, we have been conditioned to think that "success" includes this 2500 square foot mini-mansion. No one wants to live in the smaller homes we used to live in, despite them being much more economical to heat and cool as well as much more accessible when one gets old and walking becomes a major endeavor. Even if someone does choose to live in one, it will likely be expanded into something larger. Larger homes naturally cost more, and that raises the cost of all homes.
Building materials have gotten tremendously expensive, and building codes often require expensive materials. In addition, those who know how to work to the newer codes will charge more because there are fewer peop0le to compete with. When faced with the idea of building a new home for $400,000 or buying a used home for $300,000, many choose to buy the older home. That raises the price of older homes.
I live in a small home, about 950 square feet. It's in good shape and laid out well, so it is plenty big enough for us. It sits on 16 acres of land which includes a three-aisle barn, a detached garage and carport, two older mobile homes, one pretty dilapidated, the other not so much but in need of some TLC, two workshops, two wells (one contaminated, one still good), and several sheds. It appraises, according to the tax man, for $60,000. While money will not buy it, I am told that I could get up to 500k for the house and land. Several houses close to me have sold for 6 digits in poor shape on a lot instead of acreage.
TheRedneck
Be careful what you ask for; you might just get it.
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Medical science has proven that smoking prevents second-hand-smoke-related diseases.
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The surest way to repeat history is to ignore it.
Medical science has proven that smoking prevents second-hand-smoke-related diseases.
I would rather die from COVID than live with it.