Real Assets and the Price of an Address
The Money Is Made at the Moment of Sale
New money does not land evenly. It lands where the credit is, and the credit is in property.
10 min100 XP available4 challenges
A buyer takes a €240,000 mortgage and adds €60,000 of their own deposit to buy a flat from its current owner. All three parties bank at the same institution.
Entries to post
0 of 7 entries placed
Pick an entry, then choose whose sheet it lands on and which side. Every sheet must balance.
The Lending Bank
Writes both sides of the mortgage
Commercial bankAssets
What it owns
- Mortgage loans€4B
Liabilities
What it owes
- Customer deposits€4B
The Buyer
Puts in 60,000, borrows the rest
Fiduciary coreAssets
What it owns
- Deposit at the bank€60K
Liabilities + equity
What it owes + what’s truly its own
Equity
- Equity€60K
The Seller
Owns the flat this morning
Fiduciary coreAssets
What it owns
- The flat€300K
Liabilities + equity
What it owes + what’s truly its own
Equity
- Equity€300K
Answer to continue.