Investing in Property

Zorro and Loba have been advised by Cash to buy a bigger doghouse. “Property goes up in price,” said Cash. “I advise you to borrow as much as you can and buy the most expensive doghouse you can get.” I was not convinced this was a good idea, so I asked if the loans are … Continue reading Investing in Property

Investing in Property

Zorro and Loba have been advised by Cash to buy a bigger doghouse. “Property goes up in price,” said Cash. “I advise you to borrow as much as you can and buy the most expensive doghouse you can get.”

I was not convinced this was a good idea, so I asked if the loans are not terribly expensive with the interest payments? Cash laughed, “interest is lower than inflation, you can’t lose. In fact, you lose your hard-earned savings if you do not invest and borrow money for a big house.”

“I like my doghouse,” said Loba, “but I guess we can do with more space. I just not sure why the property goes up in price with time, as it gets older and needs repair, should it not get cheaper?”

“No,” said Cash, “it is a question of supply and demand. Demand will never go down here in Doggy Heaven; the dogs just keep on coming.”

Hmm, this will be a problem for late arrivals. But I have heard something about the expanding universe… maybe it will be all right after all?

Or should we invest? Economy is so hard!