> Every part of the house depreciates without maintenance. At some point the house will depreciate and the lot will be worth less than it would be if the house was already demolished.

That really depends on the market. There are areas near me where property prices have increased so rapidly they outpace any losses from depreciation. Not necessarily a good thing of course as it does lead to very expensive houses and difficulty with people trying to buy their first house.

Maybe houses made out of paper that you have in the US would, since just after 100 years they have to be demolished and built again. But houses made of concrete, that we have in Europe, just increase in value.

Yes, maybe you have to renovate the interiors, such as new floors, new electrical/hydraulic, new heating system, etc., but that is usually a small expense in contrast with the price of building an house from scratch.

No, because the value of permission to build a house on the lot can be a lot more than the cost of renovating it (even when that renovation cost is higher than the cost of building a new house on that lot). If you don't have another way to get that kind of permission (e.g. maybe it's illegal for you to contribute to the unaffiliated PAC supporting the mayor's reelection campaign because you're a noncitizen) it can be virtually priceless.

In that basic sense, yeah, OK.

A fancy old house is more fancy than a new fancy house.