The difference between renting and owning via an interest only mortgage is quite significant. With a mortgage, you don't have a landlord, so there is nobody to complain to if you have any problems with e.g. damp, boiler breakdown, old carpets etc. - these are all yours to look after, unlike when you rent. Also, the interest only-mortgage pays off the interest on the principal, but the principal stays the same over time whereas the value of the house generally rises over time. So, when the house is sold, only the initial principal is owed back to the bank, the profit goes to the owner. There is plenty of motivation for the owner to maintain and improve the property - it makes the property worth more and that increase goes to the owner not the bank. It's actually a pretty good way to get into property if interest rates are low - you don't need to be able to afford the full repayment mortgage and you keep the profits of the market and the added value of your improvements.
For instance, in Greece if you own a second property that you’re renting out, you will be taxed 50% on rents received, driving up rental costs. In both San Francisco and Berlin, “shared apartments” with strangers is becoming the new norm as are “shared cars.” Not sure people are “happy!”
Remember what drives them "you will own nothing and be happy" WEF
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Spot on. Reno loans offered through local municipality with payments attached to property taxes.
"You vill own noshink and be happy."
Klaus Schwab
The difference between renting and owning via an interest only mortgage is quite significant. With a mortgage, you don't have a landlord, so there is nobody to complain to if you have any problems with e.g. damp, boiler breakdown, old carpets etc. - these are all yours to look after, unlike when you rent. Also, the interest only-mortgage pays off the interest on the principal, but the principal stays the same over time whereas the value of the house generally rises over time. So, when the house is sold, only the initial principal is owed back to the bank, the profit goes to the owner. There is plenty of motivation for the owner to maintain and improve the property - it makes the property worth more and that increase goes to the owner not the bank. It's actually a pretty good way to get into property if interest rates are low - you don't need to be able to afford the full repayment mortgage and you keep the profits of the market and the added value of your improvements.
It’s worldwide. Every country is heading toward you’ll own nothing and be happy
For instance, in Greece if you own a second property that you’re renting out, you will be taxed 50% on rents received, driving up rental costs. In both San Francisco and Berlin, “shared apartments” with strangers is becoming the new norm as are “shared cars.” Not sure people are “happy!”