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Depreciation, in the world of real estate, is the decrease in value of a property's buildings and improvements over time. This can happen because of things wearing out (deterioration) or becoming outdated (obsolescence).
For example, imagine you own a building that's worth $500,000. Over time, the building's roof might start to leak, and the heating system could become less efficient. These issues cause the building's value to decrease, or depreciate.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the land of homes and buildings, where things age and wear,
Depreciation comes to play, for value, it does care.
It's the loss of worth that happens, when things get old or tired,
Or when they're simply out of date, and no longer desired.
Picture now a building grand, worth five hundred thousand,
But over time, the roof may leak, and the heating system's dowsin'.
Depreciation takes its toll, as the value starts to wane,
A natural part of life, it is, for nothing stays the same.
Depreciation, oh so true, it happens every day,
In the land of homes and buildings, where value may decay.
As time goes on and things grow old, it's an aspect we must face,
Depreciation, friend or foe, it's part of life's grand pace.