Hey,
The value of real estate either increases or deprecates because of unmitigated factors. I will share with you what is economic obsolescence. As a concept, it is not limited to property. Any asset or group of assets can be affected by it. Take a look at the paragraphs below to know more.
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Define economic obsolescence:When a property loses value because of external factors i.e. factors that are not on the immovable property or within the boundary of the property. An example of economic obsolescence is property value decreasing because of an increase in crime in the neighbourhood. Recessions and economic depression are common examples as well.
Usually, economic obsolescence is incurable and cannot be fixed by the efforts of the property owner. It is therefore also known as external obsolescence. Now that you know the economic obsolescence definition. I will share what triggers it.
Changes in aircraft flight patternsChanges in flight patterns may cause disturbance to the residents, If flights depart near your property or fly above your home, you will experience a lot of noise pollution.
Busy highwaysIf the highway is packed with traffic, then property owners will have to tolerate traffic noises in the wee hours of the day as well. The extra noise and air pollution will be bothersome. The key is looking for a property that is well connected by roads yet isn't next to a highway.
Other factors are environmental hazards and the loss of jobs in the real estate sector. This is all from my end on what is economic obsolescence.
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What is economic obsolescence ?
Karan
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3 Year
2022-06-27T20:08:16+00:00 2022-06-27T20:08:17+00:00Comment
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