Volker Looman: Would you moderately repay or speculate? | EUROtoday

Get real time updates directly on you device, subscribe now.

Would you moderately repay or speculate?
Bild: Picture Alliance

Anyone who prefers to spend money on shares as an alternative of paying off a mortgage is taken into account grasping. This archaic greed for reward will be happy with cash, coke or intercourse. However, as we grow old, the eager for peace and quiet usually grows.

Whe defeats whom, pricey buyers, with regards to cash? Do you suppose greed is extra highly effective? Or are you extra of the opinion that concern overwhelms greed? If you aren’t (utterly) positive, then please research at this time’s case – in my view, a “harmless” factor from the lifetime of a house owner.

The gentleman is 50 years outdated and constructed a home ten years in the past, when the world was nonetheless so as. The good piece price 800,000 euros and is now “easily” price one million. Years in the past the person had round 200,000 euros in his pocket, so a mortgage of 600,000 euros was obligatory. The annual nominal rate of interest of two.75 p.c was agreed for ten years. As a end result, negotiations are underway as to how the contract ought to proceed.