Re:Entire German bond yield curve back in sub-zero territory
by belter on Tuesday August 03, 2021 @01:07PM
(#28051601)
You want more fun? Here is the Portuguese Central Bank, some time ago, mandating all banks to apply negative rates to their mortgages within 10 days, in case the corresponding Euribor happens to be negative.
(link in Portuguese) https://www.bportugal.pt/comunicado/instituicoes-obrigadas-r...
Re:Entire German bond yield curve back in sub-zero territory
by the-dude on Tuesday August 03, 2021 @03:14PM
(#28052942)
These mortages have been available in NL and DK as well ( I had one in NL ).
My mortage did not pay me yet, but the negative rate was eating into the markup ( ~1% ). So for years I had a mortage with about 0.5% interest. I know of DK people actually got money out of their mortage.
Re:Entire German bond yield curve back in sub-zero territory
by w4llstr33t on Tuesday August 03, 2021 @03:14PM
(#28052946)
I think it is notable that Switzerland also has very favorable capital gains laws though, at least for private investors. Could hold stocks, gold / silver or crypto in Switzerland and not pay tax on gains as long as you hold them for 6 months or more, and didn't make more than 50% of your income from capital gains. [1]
[1] https://thepoorswiss.com/capital-gains-switzerland/ (mainly talks about stocks but applies to capital gains in general).
Re:Entire German bond yield curve back in sub-zero territory
by nickpp on Tuesday August 03, 2021 @03:33PM
(#28053141)
It’s also notable that Swiss cantons impose various levels of global wealth tax. Fairly small I believe, around .5% mostly.
Re:Entire German bond yield curve back in sub-zero territory
by orthros on Tuesday August 03, 2021 @04:23PM
(#28053687)
That sounds small but over 40 years that would net a portfolio about a quarter smaller than in a country without one.
Re:Entire German bond yield curve back in sub-zero territory
by DasIch on Tuesday August 03, 2021 @02:26PM
(#28052432)
In Switzerland you pay tax on the rent you could in theory receive as a landlord minus maintenance cost and mortgage payments. I suspect that this is a far bigger contributor to infinite duration mortgages than the bond market.
Re:Entire German bond yield curve back in sub-zero territory
by H8crilA on Tuesday August 03, 2021 @03:52PM
(#28053338)
Ah yes, save a bit on taxes to get the most dangerous form of financing ever available to the general public, leverage up to your eyeballs. A classic, if something goes wrong the government will help us, right? :). And it's not like an ordinary person would a) really understand what such a mortgage is, b) be able to afford the property without using it.
Re:Entire German bond yield curve back in sub-zero territory
by softveda on Wednesday August 04, 2021 @12:48AM
(#28057397)
In Australia for investment properties you can subtract the interest and all cost related to property management from your ordinary salary/wages/rental income
Re:Entire German bond yield curve back in sub-zero territory
by ComputerGuru on Tuesday August 03, 2021 @03:10PM
(#28052900)
I upvoted you for adding context, but I have a question: minus mortgage payments or minus the interest on mortgage payments? There’s a huge difference.
This comes with a whole new approach to finance, such as infinite duration mortgages (you never pay them back). And they even have those with a floating interest rate, in case you would like to bet your entire net worth on the idea that rates will stay this low till you die (and till your children, who will inherit the house with the mortgage, die, and till their children ...). Brave new world.