28 Jul The Concept of Depreciation in Real Estate
Dan Harkey, at DanHarkey.com writes great articles about everything related to real estate on his website. You can read more articles by visiting his website. In this article, he asks the question: "The Concept of Depreciation in Real Estate." Here is the article in full: "From the moment a building or improvement is completed, the value and “usability” of the improvements begins to decline. Physical deterioration, functional obsolescence, and even economic obsolescence reduce improvement value over time. Depreciation is the loss in property value from any cause. Why do we care? It leads to “successful transactions” in a lot of ways. Any property...