Re:FICO to incorporate buy-now-pay-later loans into credit s...
by toast0 on Tuesday June 24, 2025 @12:01PM
(#44367637)
Rental prices are connected to costs, but not tightly.
If I'm a landlord and my costs are $X, but I can find renters for $2X, I'm probably going to charge closer to $2X.
If my costs are $X, but I can only charge $0.9X, I'll most likely rent it for that, because losing $0.1X is better than losing $X. If the market conditions are like that for a while, I'll probably try to sell, but I'll take the loss for a while.
Additionally, if local market conditions include something like California Prop 13, a landlord that has been holding property since before I was born most likely has a much lower property tax bill than if I purchase a similar property. In that case, renting could supply them with a nice return and me with a nice discount.
If I'm a landlord and my costs are $X, but I can find renters for $2X, I'm probably going to charge closer to $2X.
If my costs are $X, but I can only charge $0.9X, I'll most likely rent it for that, because losing $0.1X is better than losing $X. If the market conditions are like that for a while, I'll probably try to sell, but I'll take the loss for a while.
Additionally, if local market conditions include something like California Prop 13, a landlord that has been holding property since before I was born most likely has a much lower property tax bill than if I purchase a similar property. In that case, renting could supply them with a nice return and me with a nice discount.