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Let's simplify depreciation and understand why real estate property value declines.

Depreciation on property refers to the gradual decline in the value of a real estate asset over time. Several factors contribute to property depreciation, including physical wear and tear, changing market conditions, and functional obsolescence.

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Let's simplify depreciation and understand why real estate property value declines.

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  1. Understanding depreciation on real estate property • D

  2. What does depreciation mean? • Depreciation refers to an asset's value decreasing over time due to wear, obsolescence, or market conditions.

  3. Different ways to calculate depreciation • You can use either the straight-line or the written-down value method.

  4. Straight line • This method allocates equal portions of an asset's cost over its useful life.

  5. Written down value It reduces the asset value by a fixed percentage each year, reflecting its decreasing worth over time.

  6. What causes depreciation? • Physical obsolescence, which means regular wear and tear of an asset • Functional obsolescence or decreased usefulness due to technological advancements or changing requirements • Factors like incomplete construction can lead to higher depreciation • Disputes related to the property boundary, title, zoning, and environmental issues

  7. What are the exceptions to property depreciation?

  8. Emotions • Sentimental value with property from personal memories and connections.

  9. Land shortage • Limited land supply in high-demand areas defies property depreciation.

  10. Property depreciation is inevitable, but strategies can lessen its impact.

  11. Thanks Would Love to hear from you. Hero Housing Finance Ltd. 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel: 18001024145 Email: customer.care@herohfl.com Website: https://www.herohousingfinance.com/ Visit here: Let's simplify depreciation and understand why real estate property value declines.

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