Interestingly, the exit of Great Britain from the EU perfectly coincided with the second part of our post.
While we were talking about theability of the Anglo-Saxon culture to prevail over the Latin one from an economic/financial point of view and, just like a domino, even in other social areas – as a further display of its power -Great Britain was strongly expressing its sovereignty and national identity through a historic referendum.
I would like to overlook the possible effects of this decision (there are too many variables, anything may happen), and go back to loans and real estate properties, with a further confirmation of the fact that our cultural and sociological roots permeate and influence every economic and political choice, without exceptions.
Therefore, in the absence of revolutionary ideas, it is important to understand that many English words have entered our vocabulary as well as our interpretation of reality. As for thereal estate sector (…), the professional agents must be aware of the fact that the dynamics which will drive this market in the future will be very different from the previous ones. And will bring some advantages, too.
By way of non-limiting example, let us consider the mortgage for the primary residence. Italy is the Country with the highest percentage of main dwellingsbelonging to private individuals, most of whom take out 20-year burdensome mortgagesto this end. Well, from a financial point of view, it is wrong to take out a mortgage.
I know that Italians will surely disagree. When I explained this concept to my mother, she said: “I do not agree with you, but you are right.”
Many people make great economic efforts to purchase their houses,believing that the property will improve its value over time; but numerous people bought their house in 2007 and now want to sell them.
Others think that the purchase of a houseis the best solution, since some money will remain at the end of the repayment of the loan (or at the end of the working life). Let us pick up this issue after the considerationof the actual costsof the house (including the interests, and in the hope that there will be no extraordinary expenses), which now needs to be refurbished.
As for real estate properties, the Anglo-Saxon system is basedon assets; in simple terms,assetsrefer to the money that you earn, while liabilities are the loss of money.Based on this assumption, the main residence is a liability and the first item of expenditure is the mortgage.
The distinction between the ownership and the use of an asset is quite complex for the Italians. The explanation of the leasingsystem required huge tax incentives. But now things are changing: the awareness of this mechanism is slowly starting to make its way through the rental of luxury/ sports items and capital goods for production purposes as well asthrough the same sharing economy. The comprehension (and acknowledgment) of the importance of distinguishingthe owner from the user of an asset will help us minimise the per capita financial risk and, at the same time,increase the adaptability and flexibility of our lifestyles, as required by the current environment around us.
I disagree with those who state that this will lead to a global standardization and homogenization. Conversely, I believe that this will help distinguish trivial aspects from the added value: thus, efficient/well-designedreal estate properties able to generate income will be enhanced by the market,now more than ever.
Emanuele Grassi
