People move into a property owned by an 'agency'. They pay a 'rentgage'. The money from their rentgage goes in a number of different directions: to the agency (for administration (don't expect them to do it for free)), to a repairs and home improvement fund and the rest is invested in new property.
The person who pays the rentgage does not own the property but has a share in it as he does in all the other properties the agency invests in. He owns a share in all the property the agency has bought that is proportional to the amount he has paid in.
2007-07-28 22:00:03 · 4 answers · asked by tuthutop 2 in Business & Finance ➔ Renting & Real Estate
Hi,
Sounds good in theory, but agencies need to make a profit ands with house prices and land prices being at a premium, there would not be much profit to be had. And, how would you decide who got the limited housing? Speaking from experience, councils/ housing agencies are rascist in their choice of who is needy, i was point blankly told if I was a non white i'd go from a G rating, to an A rating, just for not being non-white. How would you make sure it was a fair system, and how would you manage the enormous list of applicants, it's be an admin nightmare!! once people were in, they'd never leave if they were making money form living in a house!
2007-07-28 22:08:09 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I am not clear how you get the money to buy the houses in the first place. Most renters don't have the money to buy houses, that's why they're renters. Now let's assume somehow you get a rich philanthropist or the government to buy 10 houses to get the thing started. How do you decide who the lucky 10 people are to start renting? Remember every person who pays their first rent check has an equal share in the houses. That's an instant 10% ownership in 10 houses after paying one month's rent. Everybody in town would want to be one of renters. If I were one of the renters, I would talk with the other renters and say: "Instead of each of us owning 10% of 10 houses, why don't we each own our own house, and break up this agency."
You could try to borrow the money to start the agency, but this would cause a whole new set of problems if someone moves out and you can't find a new renter.
2007-07-29 11:30:06 · answer #2 · answered by BIll Q 6 · 0⤊ 0⤋
You must have way too much time on your hands...
2007-07-29 08:23:27 · answer #3 · answered by john p 3 · 1⤊ 0⤋
I disagree with it. Thanks for asking.
2007-07-29 05:13:47 · answer #4 · answered by lostrebelchild 4 · 1⤊ 1⤋