This is more for an open discussion on this startup: https://fleq.com/
The company buys any house you want. You then pay rent to live in the house WITH the option of paying for shares in ownership of the house. Over time the idea is that you'd obtain more and more shares of the home to eventually own it, or to at least build equity in it. As you own more equity your rent also decreases. The pros are that it requires no burdensome down payment like a traditional mortgage, gives you the power like all cash buyers have, and offers a ton more flexibility, because you won't be tied down to a 30 year mortgage. You also pay no interest and can leave on a whim if you want. You can cash out your shares at any time if you want to move without being responsible for paying off the rest of the mortgage first. It is like renting-to-own.
Of course the terminology being thrown around by the company is a bit disingenuous; sure you don't have to pay interest, but you ARE paying rent and other fees probably.
At what point would a model like this make sense? Seems like an interesting exercise to think about that might offer a lot more flexibility if the numbers are competitive with a 30 year mortgage. Yes, I realize there already exist similar types of product out there, but this is still a new model.
Submitted December 12, 2019 at 09:10PM by MutantCRISPRbaby https://ift.tt/2tdznjv
