Category: Mortgages

Bon viager: Part 2, Synthesis of family

28 July, 2015 (10:00) | Annuity, Apartments, Elderly, Escheat, Homeownership, Housing, Innovations, Mortgages, Paris, Rental, Tenure | No comments

[Continued from yesterday’s Part 1.] By: David A. Smith In exploring the en viager model of tenure, prompted by a story on BBC News (1 July 2015), we’ve established that en viager, aside from being an antiquated legal form that survives in French law (and is enjoying a revival driven by demography), also creates a […]

Bon viager: Part 1, Synthesis of tenure

27 July, 2015 (11:50) | Annuity, Apartments, Elderly, Escheat, Homeownership, Housing, Innovations, Mortgages, Paris, Rental, Tenure | No comments

By: David A. Smith Just as water and ice are two forms of the same molecules, lump sums and cash flow streams can be the same present values, one just transmuted into another.  Over the decades, ambition transmutes into experience We’re familiar with some of the forms: 1. Mortgage loan.  Receive cash up front, make […]

The unexpected hanging: Part 2, Too many banks here anyway

24 July, 2015 (10:00) | Austria, Banking, Consumer protection, Currency risk, Eurozone, Global news, Homeownership, Lending, Mortgages, Risk, Swiss franc | No comments

[Continued from yesterday’s Part 1.] By: David A. Smith Yesterday’s Part 1 told half the story of an Austrian homeowner and acquaintance of columnist/ pundit David Frum. as described six months ago in The Atlantic (January 29, 2015), whose astonishment at being assessed a €12,000 mandatory loan prepayment demand, because though paid in Euros and […]

The unexpected hanging: Part 1, Before it was pushed

23 July, 2015 (10:00) | Austria, Banking, Consumer protection, Currency risk, Eurozone, Global news, Homeownership, Lending, Mortgages, Risk, Swiss franc | No comments

By: David A. Smith The man was sentenced on Saturday. “The hanging will take place at noon,” said the judge to the prisoner, “on one of the seven days of next week. But you will not know which day it is until you are so informed on the morning of the day of the hanging.” […]

Better to be franc?

26 December, 2014 (10:00) | Bank regulation, Banking, Capital markets, Currency risk, Eurozone, Foreclosure, Housing, Hungary, Lending, Mortgages, Switzerland |

By: David A. Smith Long ago I figured out that, when it comes to currency risk, never lend in foreign currency and never borrow in foreign currency.  I would have thought this was obvious, but some of the world’s smartest bankers (the Swiss) managed to put themselves into just such a foolish position, as reported […]