Before you jump into any conclusions, would you let me buy your house for £10,000 and rent it out sharing the profits with you?
Before you jump into any conclusions, would you let me buy your house for £10,000 and rent it out sharing the profits with you?
If this is a serious question… Think about the return of investment for the person. How long will it be before they see the value of their house back from renting it? I mean if a house is $400,00 (I’ll use Canadian prices, that’s where I am) minus $10,000 for buying it, they have to recoup $390,000 in a reasonable period of time. Say you pay them $1000 per month, that’s 390 months, before breaking even. That’s before considering sales taxes, lawyer fees, income taxes and them having to pay for a new place to live.
A more reasonable thing would be pay 10% less than market value and a portion of what you’re charging for rent whether it’s rented or not.