Resale Value / Depreciation

[schoonerdog]

It's weird now too. Boats actually make more sense than a house in some places. A boat has global appeal, as long as someone somewhere has money, they can get your boat and have it delivered to them. So if the US is doing badly and the EU is doing well, then someone flies over to the US and buys the boat. The buyer market for used boats is very broad. But a house needs not only someone who wants a house, but someone who wants to live in that location. Houses in Wayne county Michigan are selling for $7,500. Yep, didn't make a mistake, $7,500. The average housing value there is around $16,000. You read that right too. While people everywhere may like the houses being offered, they don't like the area, and that has depressed the prices to what they were in the 1950s. Boats also have intrinsic value, it's costs something to produce it. The boat can't be sold profitably for less than that price (at least new). Land however has no intrinsic value. It's pure speculation as it costs nothing to produce.