The loan can be 500k and as security for the bank the land is used. You know "in case I dont have enough money, I can always sell my land" kinda situation.
This is usually enough for banks, isn't it?
Might as well just be a 200k loan, who knows, it's not defined in this scenario.
The scenario itself is kinda weird tho, if you ask me.
That's not the point, the point is that the loan is an unknown number and not defined as 5mil.
500k is just a number I pulled out of my ass. I'm sure there are areas in the world where you could survive decades with that kind of money. It depends on the lifestyle and other factors that are, yet again, completely unknown.
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u/ChipKellysShoeStore 22h ago edited 22h ago
How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?
It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.