Do Steel Home Barndominiums Depreciate?

It is important for you to know how your building gains and loses value over time. Whether you have been a barndominium owner for a long time or just adopted the trend, you have to know how to maintain your property’s value and capitalize on any effect of devaluation of your barndominium.

Over time, your steel home barndominium will depreciate in value. Meanwhile, in the traditional housing system, the reverse seems to be the case. Traditional houses tend to appreciate over time. As such, they are able to capitalize on depreciation benefit in the form of tax relief.

Depreciation is the loss in monetary value of an asset. While it looks bad on the surface, I mean you don’t really plan of letting your asset drop in value, it doesn’t necessarily mean it is bad. In fact it can be a good situation altogether. This is because depreciation can lessen your taxable income by removing a calculated portion of the expenses incurred on buying and improving your property until your entire cost basis have been reduced.

Taking Advantage Of Your Depreciating Barndominium

Even though steel home barndominiums outlive barndominiums made of other materials like wood, it will still experience depreciation just like any other property.

You can take advantage of this by putting up your barndominium for commercial or residential rental use. You can start to take depreciation deductions from the time of listing. This process can be quite complicated. You might need to seek help from a professional to fully capitalize on the depreciation.

Taking Advantage Of Your Depreciating Barndominium

You can rent out your barndominium on popular real estate companies. Because of the increasing popularity of barndomiums, it’ll be easier for you to locate its category. Although most of the barndominiums are listed for sale, you can try renting yours out. You just need to know how to market your property well.

Factors That Make Your Barndominium Depreciable

Your property must meet the following requirements set aside by the internal revenue service (IRS) for it to be considered depreciable.

Factors That Make Your Barndominium Depreciable

  • The expected lifespan of your property must be more than a year.

The average Barndominium is around 50years or more. This reason alone makes its value depreciate yearly. As the building ages, various parts of the building starts to deteriorate, hence the value also. Although, in the long run, appraisers or home enthusiasts may consider this building as a relic and decide to value or purchase for huge sums. This is very possible but very unlikely.

  • You must be the owner of the property. You can not claim a depreciation deduction if you are not the owner of the property. Or in another case, you are subletting it out. Even if your property is subjected to debt, you are still considered as the owner.
  • The property must be an income generator. This means that the property is either for business or to generate income. Most Barndominium users usually have their workspace in their living space, or sublet it to various tenants for rent.
  • Your property must have a determinable useful life. The useful life for a residential property is 27.5 years while that of commercial property is 39 years. Barndominiums have a useful life of over 50years, making it subject to depreciation.

What Is Expected Lifespan Of Your Barndominium Building?

Barndominiums are typically built with metals. Unlike wood and other building materials, metals have a longer lifespan. Steel is one of the best metals suitable for building construction. It can withstand the effect of earthquake and thunderstorm. Hence, steel home barndominiums are one of the most long lasting structures.

Your barndominium can last up to 50 years. During its lifespan, it will serve its purpose of serviceability and functionality. Of course, you would have to make sure that it is adequately maintained from time to time.

How Can You Prolong The Lifespan Of Your Barndominium?

The following are steps to take to help prolong the lifespan of your Barndominium:

How Can You Prolong The Lifespan Of Your Barndominium

Protect The Metallic Components

Application of paint on the metallic parts of the barndominium will effectively protect it against harsh weather conditions. Although, in the long run, the metallic parts will give in to the pressure of the weather elements. The paint will begin to wear off from the surface and then expose the metallic parts.

Hence, it is important to repaint these surfaces at regular intervals to prevent this from happening.

Use Steel For The Metallic Part And Wash Parts Exposed To Chemicals

Steel offers some resistance to the formation of rust. It is the best kind of metal to use when building your barndominium. Another added advantage is that, steel is cheaper than wood and other building materials. Also, as a metal, it is fire-resistant.

Furthermore, you can wash your steel home barndominium surface. Yes, you read that well. Generally, the combination of oxygen and water results in rust formation. Nevertheless, there is a need to wash the parts of the metal exposed to chemicals. These chemicals will eat out the protective layer of your building and expose it to weather elements. It can easily increase the chances of rust and corrosion.

Clean Out Your Barndominium Roof Regularly

Ensure you take proper care of the roof by cleaning it out regularly. Remnants of dirt and leaves collected by the roof can cause water stagnation. Hence, aiding the formation of rust. You can make use of long brooms to sweep off the leaves and dirt on the roof. Doing this ensures that your barndominium experiences a prolonged lifespan. Also, during winter ensure that your roof is free of residue or heaps of snow for extended periods. Else, it may compromise the integrity of the building.

Conclusion

Steel Barndominiums like every other commodity depreciates both in value and structural integrity yearly. The homeowner has no control over this phenomenon, albeit the structural integrity. As such, the Barndominium owner would have to engage in a host of practices to slow down the wear and tear on the structure.

James Hall
James HallBarndominiums Advisor

I'm James, your barndominiums advisor. Several years ago, I had no idea what barndominiums were. Although I'd spent over 10 years in the construction industry, the first time I heard about barndominiums was when I saw my neighbor building a new-style home. That was the first barndominium I've ever seen, and I found it so fascinating that I wanted to learn more about them.

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