European Tribune - Comments - European Salon de News, Discussion et Klatsch

European Salon de News, Discussion et Klatsch - 12 December | 128 comments (128 topical, 0 editorial, 0 hidden)

In the UK market, property almost always accumulates. The whole point of "buy-to-let" mortgages that were major creators of the recent property bubble here is that you don't pay off the equity, rental pays the interest and inflation increases the capital stake.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Sat Dec 12th, 2009 at 10:29:09 AM EST
[ Parent ]

Re: renting vs owning (none / 0)

that's exactly what I said: interest payment and rent are substitutable, and actual wealth accumulation only comes from asset price inflation, a highly risky bet to make when you carry the risk of the downside (prices going down).

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Dec 12th, 2009 at 10:58:15 AM EST
[ Parent ]

European Salon de News, Discussion et Klatsch - 12 December | 128 comments (128 topical, 0 editorial, 0 hidden)

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