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Each asset has ownership costs and risks associated with it. The uncertainty of the future cost of ownership is a risk you take on when you buy the asset. It s
by avz 13y ago
Each asset has ownership costs and risks associated with it. The uncertainty of the future cost of ownership is a risk you take on when you buy the asset.
It seems fair to me that the risk of the future variability of the cost of ownership of a property is assigned to the owner of the property.
I understand why you'd rather have someone else take on the risks, but newcomers are an unfair pick. How about an insurer or another financial counterparty? I'm sure it's possible to come up with some synthetic instrument which mimics the price movement of the property and can serve as a reliable hedge.