Less Appreciation: In real estate, less appreciation refers to a decrease in value due to changes in the market or the surrounding area. This can happen for a number of reasons, including a decline in the local economy, an increase in crime rates, or a decrease in the quality of schools. Investors typically avoid properties that are prone to less appreciation, as it can lead to a loss of capital.
Depreciation: Depreciation is a measure of how well a property maintains its value over time. It is typically expressed as a percentage, and it takes into account both physical and economic factors. Physical factors include things like the age of the property and its condition, while economic factors include things like the local job market and inflation rates. Properties that appreciate more slowly are said to have higher depreciation rates.