Practical Interest Rate for Mortgage v.06b

Pay attention to the auction price of your collateral, how much lower is it from the market price and is it consistently so. So from that number take the difference out, all of the money you paid including the principal up until now is the Practical Interest rate. It is only no longer interest, or had became the principal when it had passed that threshhold. (Still passed that threshhold it is going to be part principal and part interests ok not 100%).

If you ended up selling the property at market price then its your "profit", if things got sour and prices dropped, at least the market price would be the auction price and you've factored in your interest payments as interest payments.

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If the tax office would acknowledge this, then one could have a setup where there's extra cost at the start of your credit, or alternatively throughout the early periods, and then if in the end the credit was successful the tax would be charged. If the credit was a fail then its not going to be taxed.

Isn't it reasonable given the income tax wanted to take a share on profit? So it shouldn't take away from non profit transactions. 

Moreover the government seems to like credit and considered it to be a part of its product or something. Its encouraged what I was trying to say. So why not this option?

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On the other side of the credit, shouldn't the lender/bank recorded instant repayment because of the collateral, therefore revenue? No because lets say that at the end of the credit they would recorded it as cost again when they "returned" the collateral, such practice is not conservative, its contingent towards income which is uncertain. So not an option

This then gives rise to the interests losses incurred by the government out of the whole scheme. Such is the properness of it, that is the articulation of risk exposure of the whole economy when one got into debt.

Pay attention to the first paragraph about "revenue" that's wrong, the bank or lender wouldn't incur revenues at all because the difference between market and the actual proceeds of the collateral wasn't going to be a revenue for the bank / lender. Therefore it is a real risk of debt or a real cost of the economy as a whole when one got into debt. 

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Here's the thing, is having a child easier than getting into debt? Just the nature of things that order drew from chaos while proceeding forward. Therefore the right attitude is to understand and acknowledge.

Watch: CNBC's coverage of Berkshire Hathaway's annual meeting. Minute 35:55 is particularly relevant. Here Warren made a position proposition about AI and compared it to the World War, and then they answered another question about the real estate.