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by yayachiken
1427 days ago
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> Source? Assuming an economic lifetime of 70 to 100 years for new buildings is industry practice based on standards like DIN 276. You can find those numbers (with some variation) on pretty much every web page dealing with economics of building, for example here: https://www.bauprofessor.de/wirtschaftliche-nutzungsdauer-ge... You can also approximately extrapolate that number from the source I have given you. (Which is based on a survey by the federal government of Germany) If approximately 50-60% of houses are older than 50 years, then assuming a approximately linear to progressive attrition curve you will get a number around 100 for the average lifetime. Of course a long tail exists, but 1. I was talking about economic costs, people might just like their houses and renovate even though it is financially not worth it, and 2. after 100 years the historical protection (Denkmalschutz) gets more and more relevant and is a whole different set of regulations. |
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In other words: if you build a house for $X and live in it then for tax purposes it is assumed that (on average) after a 100 years you must have been spending $X for maintenance so that you can sell the building for $X. If you have spent more money, then you can't deduct that from tax (exceptions exist).
Or in yet other words: if you don't spend anything for maintenance then after 100 years (on average) the building will be worth nothing, meaning that it will cost the same to rebuild it compared to fix it.
But since most people maintan their buildings, i.e. fix the roof when it starts leaking, fix the doors and windows when they break or are not airtight anymore etc., buildings are much older than 100 years. 100 years is the _minimum_ time before it's even worth to rebuild on average.