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Here's a crazy idea that actually exists. In a handful of countries tenants pay something colloquial called "key money". It's usually a lump sum, say $150k on u
by bane 10y ago
Here's a crazy idea that actually exists. In a handful of countries tenants pay something colloquial called "key money". It's usually a lump sum, say $150k on up, to a landlord. The landlord invests the money and makes what they can off of it and the tenant lives rent free. When the lease is up the tenant gets back their key money to take elsewhere.
- pkaye 10y agoWhy not the tenant invest the lump sum themselves and give the interest to the landlord?
- bane 10y agoIf you fail to pay, the landlord gets your lump sum. It's a security deposit on the property in essence.
- CodeCube 10y agothat's really interesting, thanks for posting about it I'll look up more info :) However, unfortunately in a scheme like this, the tenant would have to have 150k in the first place. I'm looking to find ways to lower barriers to entry so that one doesn't have to be rich.
- bane 10y agoSorry for the slow answer, yes, they'd have to have the money up front. It works better and is more common in multi-generational households where they can pool their resources and savings across generations. There's a version where the deposit is much smaller (say 10k) and rent is still payed. The example I know the most about is: https://en.wikipedia.org/wiki/Jeonse https://en.wikipedia.org/wiki/Jeonse