Negative interest rate mortgages????????

[Victor Vella]

What world are we living in?!?!?

https://www.google.com/amp/s/amp.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage

Get paid from a lender to hold a note on the property???????

It’s easy to say I think it’s crazy for the US to ever get to this point....but if it does - what does it say about valuations?

[Charles Carillo]

@Victor Vella

I have been following the interest rates in Europe since some of our investors are based there and this has been going on for quite some time. In 2012, the Danish government sold 10-year government bonds a -.32%. The 10-year government bond is currently -.598%. Lots of European banks are charging customers a fee to leave their money in their banks which is another important part not to forget. If a bank is charging 1% to customers for their funds being deposited and they are loaning it for -.50% there is a .50% spread.

Sources:

https://www.reuters.com/articl...

https://www.marketwatch.com/in...