Re:American landlords derive more profit from renters in low...
by paulddraper on Saturday March 23, 2019 @10:38AM
(#19470617)
> even considering those costs
But there is an overall expected value premium to be paid on low-risk purchases (or to be gained on high-risk purchases)
On average, you will lose money by purchasing insurance. (That's how insurance derive a profit.) However, people are generally happy to do that, because they value the certainty of it, even if overall it's the arthemtically subpar choice.
I expect that you will make profit from the stock market than a CD, even after averaging bear and bull years.
I'd expect that low-income rental are riskier investments, and that landlords are more likely to lose money, but overall the expected value of return is higher. That's just how markets work.
But there is an overall expected value premium to be paid on low-risk purchases (or to be gained on high-risk purchases)
On average, you will lose money by purchasing insurance. (That's how insurance derive a profit.) However, people are generally happy to do that, because they value the certainty of it, even if overall it's the arthemtically subpar choice.
I expect that you will make profit from the stock market than a CD, even after averaging bear and bull years.
I'd expect that low-income rental are riskier investments, and that landlords are more likely to lose money, but overall the expected value of return is higher. That's just how markets work.