The Future of Creative Financing Techniques

These and other creative financing techniques are growing in popularity and are likely to become even more important in the future. The new methods attempt to take advantage of the low rates on old mortgages, the tax advantages of home ownership, and the desire of sellers to avoid large capital gains taxes when a home is sold. they illustrate one favorable aspect of high interest rates and tight credit- such conditions frequently stimulate the invention of new financial instruments to better serve the Public‘s needs and more efficiently utilize scarce funds. Creative home-financing techniques also serve as a reminder to those government agencies responsible for regulating the financial system : rules and regulations which ignore or try to suppers the basic force of supply and demand in the marketplace soon will be outmoded by the ever changing technology of finance.