How do House Bonds work?

[Sinbad]

I saw this and thought of saturnz

 

[Splinter]

let me propose something you might not have considered

your goal is to live in a house, lets assume this

you take out a loan, you purchase a property in the best location possible, lets say its a small studio, you then rent it out and use the funds to rent a house

why?

because now the interest on your bond is tax deductible, together with the usual expenses

the maintenance on the house is now the expense of the landlord, and you have the flexibility of moving etc


moreover the yield and capital growth on the studio in the best location will outpace that of the house

that's how I view things

You do not seem to realize that, the person you are renting from, is supposedly employing the same strategy you are espousing

 

[Geoff.D]

Simple you get to live in a house owned by a bank and continue to pay rent.

What is so difficult to understand?