Non-depreciable

Referring to an asset that does not decrease in value over time due to wear and tear, obsolescence, or the passage of time. These assets are generally considered to have an indefinite useful life, meaning they are expected to remain valuable or even increase in value. They are often contrasted with depreciable assets, like machinery or vehicles, whose value declines as they are used. non-depreciable assets often represent investments or holdings intended for long-term appreciation or preservation of value.

Non-depreciable meaning with examples

• Real estate is often classified as non-depreciable. Land, specifically, generally holds or increases in value over time, unlike a building which will depreciate. Investors often choose to invest in property for its potential for capital appreciation, not its immediate usability. This makes land a long-term asset for financial planning and helps diversify a portfolio.
• Fine art, such as paintings and sculptures, frequently qualifies as non-depreciable assets. These pieces are preserved by museums or private collectors with the goal of their value rising over time. Collectors and museums generally insure and care for them to prolong their lifespan and to keep up their value.
• Antiques and collectables, like rare stamps or coins, are often considered non-depreciable investments. The appeal of such goods is their uniqueness or historical significance, which can drive demand and increase prices. Investors will often acquire them for potential appreciation, storing them with care to maintain their condition and value for their expected lifetimes.
• Certain financial instruments, such as some types of bonds with fixed terms or derivatives that hold their value, can be viewed as non-depreciable. They provide a guaranteed return of principal. These financial vehicles are used to build a steady stream of income. The value is stable because there is a guaranteed rate of return.