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I think you got the point. Bananas are a depreciating asset but you can still make a profit around it. House prices should be the same, depreciating. That doesn
by satellite2 5y ago
I think you got the point. Bananas are a depreciating asset but you can still make a profit around it. House prices should be the same, depreciating. That doesn't mean real estate should not be a profitable business though. But it should probably not be profitable for the end user.
- chii 5y agoprofit and depreciation are different, orthogonal things. A banana can be profitable because people who buy that banana can buy it at a higher-than-production-cost price, because their jobs produce more value per hour than growing banana (and agriculture has become so efficient). The fact that bananas spoils after a while doesn't make a difference here.