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Hmm the mechanism isn't clear to me. What do you mean by "pay rent on the fraction you don't own". You buy a piece of the house all cash, and rent the other pa
by adam_arthur 5y ago
Hmm the mechanism isn't clear to me. What do you mean by "pay rent on the fraction you don't own".
You buy a piece of the house all cash, and rent the other parts? Doesn't this imply it must be a multi-family unit?
And yeah, with no debt, only the wealthy will be able to afford properties. But maybe I don't understand the mechanism.
- nly 5y agoA bunch of investors buy 100% of the property and own it through a holding company under mutually agreed investment terms. The tenant rents the property at the market rate, but gets the option to buy it bit by bit, at the current market price. When they buy e.g. 20% of the property, their rent goes down 20% (because they only pay market rent on the 80% part they don't own). Fairly simple really.