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Message: <blockquote data-quote="Agemegos" data-source="post: 1538883" data-attributes="member: 18377">Rubbish.In the most peaceful and prosperous times, Mediaeval-era farmland sold for twenty-five to thirty years' rent, implying an interest rate on secure investments of 3.3 to 4% per annum. In disturbed or impoverished times purchase prices were lower, reflecting higher rates of return. A fairly common price of land in late mediaeval England was ten to twelve years' rent, implying an intereest rate of 8.3% to 10%.The purchase price of urban property was usually lower in terms of rent: but that includes a risk premium for vacancy and fire and an allowance for depreciation.The interest rates implied on merchant contracts was often in the range around 16% (incorporating a risk premium). Interest rates on personal loans were sometimes 25%-33%, reflecting considerable risk of default and the difficulty of suing for debt.</blockquote>