Date:         Sun, 18 Sep 2005 07:49:22 -0500
Reply-To:     John Rodgers <inua@CHARTER.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         John Rodgers <inua@CHARTER.NET>
Subject:      Re: VW means 'Vacation Wagon' :-) equity
Comments: To: d spence <dkspence@TELUS.NET>
In-Reply-To:  <C742D2F1-2808-11DA-B7C7-0030657D68AA@telus.net>
Content-Type: text/plain; charset=ISO-8859-1; format=flowed

I still maintain that vehicles are expenses.They depreciate, thereby
eating up any so-called investment equity. With a vehicle you use it up,
wear it out, and haul it to the junk yard for recycling. With real
property, it cannot be truly replaced purely and simply becasue  they
don't make any more. What there is, is all there is, and over time the
value will increase. Money put into something of that sort, that
increases in value over time due to no depreciation - that is an
investment. The amount of money put into a non-depreciating investment
is one's equity.

Money put into stocks and bonds is a whole 'nother issue.

Regards,

John Rodgers
88 GL Driver

d spence wrote:

> So John, that's why the TR6 I paid $6000 for 15 years ago is now worth
> $18,000
>
>
> One can only have "equity" in  property that is an investment, and
> either maintains or appreciates (Real Property) If that property is one
> that depreciates, then it is not an investment but an expense,because
> the depreciation will eventually equal the equity and there will be no
> value at all. Vehicles are machines, they depreciate in value and thus
> any "Equity" is eventually lost.
>
> Vehicles are expenses, not investments, depreciate, and thus have a
> continualy declining equity, until there is very small residual  value
> left. Residual equity if you want to callit thant. Such are the vagaries
> of the marketplace.
>
>