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Bloo Loo

If You Cant Make Money Building And Selling A House

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http://money.cnn.com...ndex.htm?hpt=T2

Builders in the US, backed by a Wall Street firm plan to include in the sale contract a fee of 1% payable to the builder, every time the property is sold in the next 99 years.

the builder sells a bond to the Wall street firm who sells the "bond" to investors.

the builder then collects the money he expects the sales to make in the next hundred years, less a coupon for the investors....and the Wall STreet firm too.

Apparently this will bring money to developers now and they will spend it not, boosting the economy....

desperate times in wall street.

Bankers.....hanging is too quick for them.

Edited by Bloo Loo

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hope my pension fund get involved,this souds like a win win to me :ph34r:

In other news, US existing home sales fell to the lowest level ever (ok, that only means the 90's as they didn't track the number of sales before, but hey...). There is a 12 months inventory, plus a shadow inventory of (conservatively) half that size.

You're an US buyer. Would you choose to buy a traditional house, or a special house with a contract stipulating that, to resell it, you must pay 1% of the amount to a company AND you must ensure in the sale contract that any further buyer will comply with that contract, thus limiting your reselling opportunity ?

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http://money.cnn.com...ndex.htm?hpt=T2

Builders in the US, backed by a Wall Street firm plan to include in the sale contract a fee of 1% payable to the builder, every time the property is sold in the next 99 years.

the builder sells a bond to the Wall street firm who sells the "bond" to investors.

the builder then collects the money he expects the sales to make in the next hundred years, less a coupon for the investors....and the Wall STreet firm too.

Apparently this will bring money to developers now and they will spend it not, boosting the economy....

desperate times in wall street.

Bankers.....hanging is too quick for them.

I would make that illegal. It is sure to catch innocent unaware people. I would advise anyone to refuse to buy a property stuck with such a contract.

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I would make that illegal. It is sure to catch innocent unaware people. I would advise anyone to refuse to buy a property stuck with such a contract.

It says somewhere in the article that one state already has.

And yes, they are monetising this.

next theyll be monetising tax. you know, take 1% from every £ we pay in tax, guestimate how much we will be paying over our lifetimes, and sell bonds to investors...course, the Government could get the money up front...from investors.

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99 years?

I can think of a better scheme, why don;t they just sell sweepstake bonds based on the expected time the the newbuild will fall down over the next 99 years.

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Apparently this will bring money to developers now and they will spend it not, boosting the economy....

So once more the blessed cheese makers have been passed over :(

When will their plight end I ask?

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Is this when an offshore company buys the house and it is never sold again, but shares in the offshore company are?

Or when people decide to give away houses free on condition that they buy the grass in the garden for a really good price?

Edited by mikeymadman

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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