I’ve had this idea spinning around my head for a little while, but haven’t really given it thorough thought, which is probably why the idea doesn’t exist already.
As a side note, have you ever considered that people who buy their own houses don’t have more money because they have better-paid jobs, but because with their mortgage paid, they’re not spending hundreds of pounds every month on their house.
There are so many people out there who are renting privately, or in government-provided accommodation because they can’t afford a mortgage. So, why couldn’t there be a company which, when you join, you’re put into a team of, say, 5 people. 4 of these people will already have their own house, through being part of the company, the 5th would be you. The 4 people help pay your mortgage, so they each pay 1/5 of it, and you pay the other 1/5. When your mortgage has been paid, you have a house, and you pay those 4 people back.
Sure, the complexity of that could be much more in-depth, and obviously there’d be so many loopholes and financial laws you’d have to look at, but in conclusion, what happens is you end up getting a house, the 4 people who helped pay get their money back, and then in the future you help pay for someone else’s house, and they pay you back, and so on and so forth.
I thought it was a great idea when you explained it to me, but you’ve written it a little differently here. The way it sounds now is that these 4 people won’t be repayed until the mortgage is clear…which would be 25 years minimum. I don’t think they would wait that long!
I do like the idea though of a few friends going in together to buy a place. A few years down the line, one of them could move out and ’sell’ their share of the house to someone else just starting out. By then that person would hopefully have enough equity for a good deposit on his own place. And so the chain continues….
Okay, instead of the team of people paying, it’s the company that pays for it. So those 4 people are paying back the company, and the 5th person who is getting the house is borrowing from the company. Those 4 people already have houses through borrowing money from the company, so they’re paying the company back, which keeps the cashflow going.
I suppose that isn’t a huge difference from going to a bank though…
There’s an idea in there somewhere, Dan!
Hi
A few of my friends in London are in one of thse things where they own part of their house and a housing association owns the rest, so each month they pay some mortgage and some rent. If they are feeling rich they can pay off more of the housing association and own a bit more house, which is a pretty good idea.
I think there might be a thing where they the association gets a share of the gaisn when they sell the house too, but I am not sure.
J