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Spain
Posted: 08 Aug 2011, 16:42
by biffvernon
I think I suggested a considerable while ago that if enough people can't afford their mortgage it's the bank that has the problem rather than the householder. I wonder if we're seeing the beginnings of this effect in Spain with the indignados, people who are standing up to the banks who wish to repossess thier properties.
Our local difficulties in Tottenham may have pushed Spain out of the news but here's an interesting piece:
http://www.zcommunications.org/spain-s- ... blo-ouziel
and Washington Post:
http://www.washingtonpost.com/business/ ... story.html
Posted: 08 Aug 2011, 16:46
by clv101
Indeed, I'm starting to think it could be a good idea to have a small mortgage, like some kind of hedge. Join the crowds for safety in numbers.
Posted: 08 Aug 2011, 16:59
by DominicJ
Clv
Having a mortgage could be useful, if you believe you can default on it and keep your house.
It could also backfire, and you lose everything.
Posted: 08 Aug 2011, 19:05
by Lord Beria3
DominicJ wrote:Clv
Having a mortgage could be useful, if you believe you can default on it and keep your house.
It could also backfire, and you lose everything.
+1
Posted: 08 Aug 2011, 20:55
by Erik
DominicJ wrote:Clv
Having a mortgage could be useful, if you believe you can default on it and keep your house.
It could also backfire, and you lose everything.
Indeed, and the alternative is renting which means losing everything whatever happens.
Posted: 09 Aug 2011, 08:56
by DominicJ
Erik
I thought CLV meant he had paid off his home, but was considering taking out a mortgage and telling the bank to go whistle when they asked for the money back.
Its a high risk strategy.
I "bought" a house with a tiny deposit and huge mortgage, I'm hoping that inflation will render my debts minor.
If I borrowed 5x my salary, 10 years of 10% wage growth and 5% interest turn that into 3x my salary.