<span>Typically homes increase in values over time and cars depreciate over time. Land value always increases as years pass since there will be lesser available lots while cars depreciate because as years pass more maintenance is needed allow the car to be still useful.</span>
According to the question, typically homes <u>appreciate</u> over time and cars <u>depreciate</u> over time.
There are lots of factors attributed to why homes appreciate over time and cars depreciate over time.
<h2>Further Explanation</h2>
Some of the factors that cause homes prices to appreciate over time include
Growth in population: when there is an increase in population in a particular location, it will increase homes demand in such locations.
Cost of borrowing: home loan interest rate, either in upward or downward movement is linked to home appreciation.
Demand and supply: An increased demand for homes in a particular area will increase prices, especially in areas where the available homes are not meeting with the growing population. This also implies the areas where these homes are located are suitable and attractive.
Fiscal inflation: inflation does occur when there is too much money in circulation and this also results in an increase in the price of land, building materials and many more.
However, some of the factors that cause cars to depreciate over time include
Fuel Economy:
Mileage
Road tax
General condition
Service history
Depreciation and appreciation in this context refers to the difference between how much individuals spend when they buy a car and the amount released when it is sold.
