Tuesday, November 11, 2008

Real in Real Estate

“Mortgage” ဆိုတဲ့ စကားလံုးကို စာေစာင္ တစ္ခုမွာ ႐ွင္းထားတာ ေတြ႔လို႔ ဒီဘေလာ့ရဲ႕ Side Blog မွာ Pownce သံုးၿပီး ကူးတင္ထားပါတယ္။

“Mortgage” comes from old French and means “dead pledge” because the deal dies either when the debt is paid or when payment fails.
ကိုေက်ာ္ႀကီး (Kyaw Gyi / K Sanchaung) ဆိုတဲ့ စာဖတ္သူ တစ္ဦးက အက်ယ္တ၀င့္ ျပန္႐ွင္းထားလို႔ ဘေလာ့မွာ ျပန္တင္လိုက္ပါတယ္။ ဗဟုသုတ ရတဲ့ အတြက္ ကိုေက်ာ္ႀကီးကို ေက်းဇူး အထူးတင္ပါတယ္။
Actually, the definition of the word "mortgage" is "an agreement until death".
In case, you have to learn the origin of the words "real estate" and popular financial vehicle called "derivatives".

A simple definition of "derivatives" is "something that comes from something else". An example of a derivative is orange juice. Orange juice is a derivative of an orange.Then, we used to think that real estate meant "real" or something that was tangible.
But it really comes from the Spanish word real which means "royal".Popular football team "Real Madrid" means "Royal Madrid" and real estate means royal estate.
Once the Agrarian Age come to an end and the Industrial Age began around 1500, the power was no longer based on the land and agriculture. The monarchs realized they had to change in response to the land-reforms acts that allowed peasants to own the land. Then the royalty created derivatives. Derivatives such as "taxes" on land ownership and "mortgages" as a way of allowing the commoners to finance their land. Taxes and mortgages are derivatives because they are derived from the land. Your banker would not call the mortgage a derivative; they would say it is "secured" by the land.. different words, similar meanings. So once the royalty realized that money was no longer in the land but in the derivatives came from the land, the monarchs set up banks to handle the increased business.
Today, land is still called "real estate" because no matter how much you pay for it, it never really belongs to you. It still belongs to the "royals".
from the book "Cashflow Quadrant" by Robert Kiyosaki

1 comments:

တက္တူ - 11/12/08, 3:16 PM

Very interesting post for real estate. So,I think in myanmar, there is no "BoBwarPine" and it is meaningless. Is it right??

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