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RE: Does a house and mortgage really represent security? Or does cash flow represent security?
In Sweden I think they have 100 year loans for mortgages (they can be passed to children who keep paying them). While this is expensive long-term, the monthly repayments are low which means there is more disposable income to spend.
Scam? Perhaps. However, if we consider that those who are good economically are going to continually teach and provide their children with the skills, the 1 percent s going to continually emerge anyway and those who don't get the inheritance support will never catch those who do. Massive class gaps form.
For me right now, I would take the 100 year loan and invest the rest, not consume.
The 100 year loan is a fascination construct. The amount of interest paid over the life of the loan would be interesting to know, but the huge benefit of lowering ownership cost for a home to provide disposable income for investment is huge. It makes ownership of a non performing asset much more tenable and increases the security of the situation. It’s as if you can have your cake and eat it too.
I think it’s important to always understand that there are exceptions to every rule and situations can be massaged or tweaked to make them more favorable if we keep our minds open to possibilities.
Thanks for the information, it proves the point that even a traditional mortgage, which strict performing asset stallwords hate, can be tweaked to a point where it looks and smells like a rose. LOL 😂
✍🏼Write On!✍🏼✍🏼✍🏼✍🏼
We have 40 year farm loans here, but 100 year loans sound great!
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At least in Sweden, it seems to work. They do have high prices (same in Finland where I am) however, but also very good social services.