The maintenance costs of these two assets are different. Maintaining a house is not as expensive as maintaining a car.
Houses do not require regular repairs like cars. And if anything, most home repairs can be taken care of by the owner without professional help.
This keeps the cost down. Most experts put the annual maintenance cost of a house at between 1 to 4 percent of the value of the home.
Also, any update or improvement you do to your home works to your advantage. For example, upgrading or expanding your kitchen or adding an extra bedroom only increases your house’s value. In other words, any dime spent on your home is money well spent.
With cars, the cost of maintenance is more. For example, a vehicle needs to be fueled and serviced regularly.
Furthermore, the older the car gets, the more of a liability it becomes. You might find yourself forking out a lot of money on servicing, repairs, and replacement of parts because of the wear and tear.
Also, you cannot recoup them later. Worse still, some upgrades may even make your car harder to sell when the time comes to dispose of it.
So, if you have to get money from your business to maintain these assets, you can already see which option will hurt your balance sheet more.
