Die Nationalökonomie in Frankreich

Bibliographic data

Monograph

Identifikator:: 890892032

URN:: urn:nbn:de:zbw-retromon-34137

Document type:: Monograph

Author:: Waha, Raymund de http://d-nb.info/gnd/117560855

Title:: Die Nationalökonomie in Frankreich

Place of publication:: Stuttgart

Publisher:: Verlag von Ferdinand Enke

Year of publication:: 1910

Scope:: 1 Online-Ressource (XIX, 540 Seiten)

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Buch II Die katholischen und verwandten Richtungen

Collection:: Economics Books

VALUE OF LAND AN UNTAXED VALUE 39 you would purchase the lot for $6,000, because interest upon that sum would amount to the stipulated $300 a year. But if, on the contrary, the lot hears a mortgage of $2,000, upon which the annual interest charge is $100, then the lot will cost you $4,000. (a) The mortgage interest charge of $100 reduces the selling price of the land by the amount of the mort gage, $2,000, and you will buy the land, not at $6,000, but at $4,000, the value of the equity remaining after mortgage interest has been paid. (b) By purchasing title you will assume the mort gage and will pay the mortgage interest, |ioo, but that $100 will not come out of your $200. the net income from your investment of $4,000; it will come out of the gross income, the ground rent, $300. It is a part of, and not an addition to, the ground rent. You will pay the interest, but you will not bear it, because you will have bought yourself clear of the burden. (c) The lot will thus cost you annually for use, interest on your purchase price ($4,000 at 5 per cent) I200, plus mortgage interest ($2,000 at 5 per cent) 1100, equal in all to $300, all that the land is worth for use, use being the only relation of land to man with Which economics has reasonable concern. Proposition 3. — But, besides being subject to a mortgage of $2,000, assume further that this lot of land P subject also to an old tax* of $100, which charge the purchaser must also assume. You will then purchase the land not at $4,000, but at $2,000. (a) As already seen, the mortgage interest charge of * By the term “old tax” is intended the tax in force at time of last purchase; “new tax” one imposed since last change of ownership.

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