To owe is not to own…

1 August 2013

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.”



About the author 

Sonnie Bailey

In his spare time, Sonnie likes telling people that he’s a former Olympic power walker, a lion tamer, or that he is an orthodontist. He is none of those things. In reality, Sonnie is a financial planner based in Christchurch. Through his business, Fairhaven Wealth (www.fairhavenwealth.co.nz), he provides independent, advice-only, fixed-fee financial planning services. Sonnie is a “recovering lawyer”: he has specialised in trusts and personal client work. He has also worked as a financial services lawyer for many years.

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