In most countries, houses get more valuable over time.
In Japan, a new buyer will often bulldoze the home. Why?
It is a combination of cultural preference for "new", and historical and geological.
- Earthquakes are very common and strong in Japan, and building code requirements are updated after large earthquakes.
- During World War 2 large number of houses was destroyed, and replacements ware build quickly and not in good quality.
- In Japan there is a cultural belief in natural renewal of all things (see Wikipedia article below)
- Houses are considered temporary, and as such not maintained very well, so after a while they are not in great shape.
- Value of houses depreciates over time, and as such it is not maintained
- Because they are considered temporary, houses are often build in unique taste, that may not match desires of next owner...
- House buildings fully depreciate in 20-30 years in Japan. The land has more stable value, but that is also subject to large fluctuations
Some observers say that this is no effective for building wealth in the society...
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