Half a croissant, on a plate, with a sign in front of it saying '50c'
h a l f b a k e r y
Recalculations place it at 0.4999.

idea: add, search, annotate, link, view, overview, recent, by name, random

meta: news, help, about, links, report a problem

account: browse anonymously, or get an account and write.

user:
pass:
register,


     

own2rent

mortgage that acts like rent with tax advantage of ownership
  (+1, -2)
(+1, -2)
  [vote for,
against]

create a loan with no money down and a guaranteed buy back. the loan would have a 1000 year duration so almost the entire mortgage payment is interest (deductable).

"property owner" gets rent like income from the property as well as any appreciation in its value.

"renter" gets rental rates and convenience with the tax advantage of being a property owner.

strider, May 14 2001

[link]






       Is this a form of fraud? =^)
cmeador, May 14 2001
  

       Suspect, suspect. A few thoughts:
It sound like the property owner is also the lender here, this is commonly called a leaseback arraingment. The renter, also in this case the lessee, pays premiums to the property owner for the lease. Typically, what the property is mortgaged for in installments plus 10-12% APY.
An excellent choice for the secondary residence that may be exempt from favorable tax treatment and part of a portfolio. There may be a problem with the loan term since the tax treatment will likely be found in accord with depreciation time, and after the first 10 years or so of the loan it would clearly be that mortage interest will far outstrip ROI potential for the property.
reensure, May 15 2001
  
      
[annotate]
  


 

back: main index

business  computer  culture  fashion  food  halfbakery  home  other  product  public  science  sport  vehicle