To owe is not to own...

Some excerpts form the fascinating working paper "To owe is not to own: why Russians reject mortgages (and why Americans accept them)" by Jane Zavisca:

"In the US a mortgage provides a sense of ownership, but in Russia, mortgages are labeled “debt bondage” and Russians insist that the bank, not the borrower, owns the home. Whereas borrowing to buy a home is seen in the US as a virtuous investment compared to credit cards, in Russia, a mortgage represents unconscionable hubris"
 "In any economy, housing is a special type of commodity, one of the most significant and expensive acquisitions of a household. It is the market bar none that must be created by the state. This special status has made home loans more legitimate than other types of credit in the US, but less legitimate in Russia."

Comment

Sonnie Bailey

Sonnie is the founder and principal of Fairhaven Wealth.

Before founding Fairhaven Wealth, Sonnie worked in the legal and financial services industries for over a decade.

Sonnie first became involved with financial advice as a specialist financial services lawyer. For many years, he was an “adviser of advisers”, reviewing thousands of advice files prepared by hundreds of financial advisers, and providing feedback in relation to the quality and appropriateness of advice; industry best practice; risk management; and regulatory compliance. He has published work in industry publications and spoken at various financial advice conferences.

Sonnie has also worked with banks, investment management firms, insurers, and derivatives providers.

Sonnie has worked as a private client lawyer, focusing on succession, estate planning and trusts. He ran his own legal firm in Australia before relocating to New Zealand. He has also acted in independent trustee and company director positions.

Sonnie is passionate about helping people achieve their goals and manage the risks to which they are exposed.

He has written extensively on his blog, New Zealand Wealth and Risk, which can be found at www.wealthandrisk.nz.

Sonnie is married to his wonderful wife Chrissy, and has two young children, Ben and Anna.