The flaw in your logic that three houses of different ages would not, in fact, be identical. If they were, age would not be a factor. But they would have differences in construction & layout (and remaining life of building elements subject to deterioration) that would affect price.Hi,
I would like to know how the age gets factored into the price. lets take an example of 3 exactly same homes on the same street. one is 0-5yrs, second is 6-15 yrs and the last one is over 15yr old. how would the price ranges vary?
For your specific example, perhaps you could figure out the depreciation of everything in the house and discount by that?i understand the other factors. i want to know how only age affects. so lets say same lot, same upgrades, everything remaining the same, if the 0-5 is priced at 400k, what would the 6-15 and 15-30 be priced at?
as rachelle says, some people might prefer older constructions but i have read articles which claim otherwise, that say that even though new construction materials seem cheap, they are more durable and effecient. personally, if all 3 homes are priced same, i would go for the newest. so if the older homes have to compete with new, then they have to attract me with better pricing.
Where does this number come from? I understand that a car depreciates in value, since the sale price of a 1 year old car is less than the sale price of a new car.Historically, housing depreciation has been 1.5% per year in Canada.