The Relationship Between Property Value and Interest Rates

Tena Moore

Interest rates change regularly with the fluctuation of the market.

Once you have acquired property, there are two things that will happen to your property value over time: appreciation and depreciation.

Appreciation refers to the increase of a property’s value.
Request a free Mortgage Quote>>

Depreciation , the reverse of appreciation, is when a property’s value decreases.

In whatever context it is used, the word appreciation has a nice ring to it. In the world of property, appreciation refers to an increase in the value of your property. When your property ‘appreciates’ the effect is that you have greater equity against which to borrow, and you realize a greater profit when you sell.

Request a free quote>>

Several factors can cause a property to appreciate: inflation, scarcity, infrastructure development, neighborhood improvements and positive changes in nearby properties. Making constructive changes to your property will greatly improve its value, so the appreciation (or rather, how much you appreciate your property) is in your hands to a certain extent, beyond market fluctuations.

Depreciation is the exact opposite of appreciation and is simply, a deduction taken when property value decreases due to time, wear and tear, and of course, the fluctuating market. There are more than 120 tax credits and deductions available for depreciating property.

For more information about your specific property value, contact your tax advisor or search for a ‘property depreciation calculator’ on the web.

Request a free quote>>

This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.

  • Powered by SecureRights

    Answer these questions to request a FREE quote