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quote:Originally posted by broke
Thanks for the terminology but as far as I am concerned, unless there is no debt, the bank owns the house - hence my saying "rental". Yes and it is thanks to the average owner's delusion that they are creating wealth that we may enjoy the cream of exuberance until they choose to inevitably slave away to absorb that exuberance.
Rental and freehold have nothing to do with each other. I can have a mortgage or no mortgage and the property can be either freehold or leasehold simultaneously. I was correcting the use of the term freehold, which was applied incorrectly to describe the property as unencumbered by debt. Freehold has nothing to do with debt obligation although a substantial portion of those unsophisticated "average owners" would believe otherwise. In New Zealand when a home owner borrows money from the bank they own the land title and improvements and the bank uses the land title and improvements as security. The cost of that security is interest on and fees associated with the mortgage. The owner does not pay rental, ground rent or endure the loss of ownership perogatives that would be associated with the nearest antonym of