9 karma · joined August 13, 2018
Not affiliated with this project, besides picking up on it, as the author is in my outer social circle.
Lets just call it what it is and what we all want. "The right to modify". It doesn't give you the right to copy, so it will never break any law protecting intellectual property.
I'm a dane, and we have a very unique mortage system, so I might not have as much feeling in that regard with the rest of the world.
In this case, I just felt leveraging was left out of the equation in the discussions, so it was hard to follow.
Putting it a bit simple, it would mean, that for most people, ncr_(real estate)^t > c*r_investing^t
It all depends where in the world you are, but most places have easier access to loans for real estate than investment, and everything else being equal, the risk is also higher. There might be this line of thought in wake of the financial crisis, that real estate carries close to or as much as the same risk. It doesn't. It's just not zero, and that is the lesson learned.