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Economic obsolescence is a reduction in the value of a property due to external factors outside of the property itself, such as changes in the neighborhood or the local economy. It can also occur due to changes in technology or trends that make the property less desirable to buyers or tenants.
For example, imagine you own a house in a neighborhood that's been hit hard by a recession. As a result, businesses have closed, unemployment has gone up, and property values have gone down. This could lead to economic obsolescence, as the value of your property is reduced due to the external economic factors.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Economic obsolescence is a mouthful to say,
But it's a way to measure a property's value, come what may!
It happens when external factors take hold,
And make the property less valuable, as we're told.
Imagine a house in a neighborhood so fine,
But then a recession hits, and it's no longer divine.
Businesses close, unemployment goes up,
And the property's value takes a big ol' cut.
So remember, economic obsolescence is a thing,
It's a reduction in value that makes our hearts sing!
It's due to external factors that are hard to predict,
But it's important to know, as it can have a big impact!