Posts Tagged ‘Renting’

HOW TO BUY YOUR OWN HOUSE BY JUST RENTING IT

September 18, 2015

Anyone interested in  setting up a housing co-operative to buy housing to then rent to our members along the lines of the idea below ?

My idea is to simply set up an organisation which would continuously seek crowdfunding  for redeemable shares offering (at present) about 3-4% which would be used to purchase rentable homes. The redeemable shares would enable savers currently offered laughable savings rates by the banks to be able to use this as a safe and reliable method of  savings offering much better returns than banks.

The tenants to which these homes would be rented  would also share in the profit their rent ultimately generates as it pays off the purchase cost. The whole idea is to enable the tenants to build up a sum of money from the profits of the organisation for them to use as a deposit to buy their own home.

If the funds borrowed to 100% fund the purchase are fully repaid by means of charging rent, at the end of a term similar to an average type of mortgage of, say 25 years, then at that point the organisation would own the asset outright. It would obviously then be able to offer a portion of the value of that asset to the tenant.

This portion would accrue from the moment the tenant commences paying rent and would be available to the tenant whenever he leaves  which could be at any time. He does not have to remain any longer than any initial short tenancy.

The tenant would always be paying a ‘market’ rent the same as any other tenant. But he would be getting something back that no other tenant ever does. He will be getting back a portion of the rent he has paid which he can then use as his deposit to go and buy his own home with an ordinary mortgage if he so wishes.

Instead of just paying rent to line a landlord’s pocket, tenants would get something back so their rent would be not completely wasted money dow the drain as it normally is for all tenants.

This model would thus enable a person with no capital whatever to accrue a deposit for their own home purchase, or even use this organisation to end up either a long leaseholder on  low rent if he wished to remain in the property. It could almost be viewed as a means of just turning an ordinary rental into a (different) type of mortgage for the ultimate purchase of a home. A mortgage where no deposit is needed at all. It’s just a rental that eventually just turns into actual home ownership.

It offers a means of home ownership which dis-enfranchises no-one and whereby any tenant turns progressively into an owner.

If set up as the legal concept of a Co-op, it is legally allowed to ask the public to invest in redeemable shares which  would pay an interest rate which might currently be 3-4%.

This is just a brief description of the idea, obviously there is a lot of detail to ramble on about, but I’ll leave that for  the moment as it isn’t needed until people want to know more and join.

Oh, by the way. I have spent a lot of time doing all the maths and the idea does work. You can have a look for yourself if you are interested & contact me.

With the help of the crowdfunding crowd, we can cut the legs of those greedy bankers and eventually take all their mortgage business away from them so that every penny people pay to live in a home goes directly towards actually paying for that home and not the huge profits for  greedy bankers.

This idea has wings; it could take off and fly !

leave a comment if you’re interested !

Advertisements

CORRUPT COUNCILS ACTING ILLEGALLY BY FALSELY CLAIMING HOUSING APPLICANTS ARE ‘INTENTIONALLY HOMELESS’.

March 9, 2015

8th March 2015

http://www.dailymail.co.uk/news/article-2535136/Average-British-family-home-size-shrinks-two-square-metres-decade-increasing-numbers-forced-live-flats.html

I’ve just seen a TV programme about three single mothers being homeless and the utterly filthy way they are treated by their local councils. (BBC one March 3rd 2015 –  ‘No Place to Call Home)  see it here:

http://www.bbc.co.uk/iplayer/episode/b054dvws/no-place-to-call-home

One woman & her two kids had been forced to leave the privately rented flat she was renting because the boiler broke  and the typically nauseating private landlord simply refused to mend it. So this single mother arranged to live with her own mother in the mother’s council house.

But the council found out and told the mother she would be evicted from her own council house herself if she continued to allow her daughter & two kids to stay with her as the council said that made the council house overcrowded.

As the threat from the council now meant the mother, daughter and two kids would all be thrown out on the streets to be homeless by this spiteful and vindictive council, the mother had no choice but to tell her own daughter to leave.

This made the daughter and two kids ‘street homeless’- they had absolutely nowhere to go except live on the streets because they could not find private accommodation they would be able to afford quickly enough, if at all, as rents were nearly all far higher than they had any hope of being to afford – even if they received ‘Housing Benefit’.

Housing benefit has been cunningly arranged by this disgusting Tory Government to be too low for tenants receiving it to have much hope of finding any privately rentable accommodation.

So, this single mother is obliged to inform the council she and her young children will be on the streets, and could the council therefore re-house her as the law says it has a legal obligation to do.

No, said the council. We know we have a statutory duty where an Act of Parliament says councils have a legal obligation to house homeless parents with children, but we’re not going to. And we’re not going to because part of that same Act of Parliament says that if a person has made themselves ‘intentionally homeless’ we are allowed to refuse people we would otherwise have a legal obligation  to re-house.

So we are telling you, single mother with two young kids, that we think you are intentionally homeless and you can go F**k yourself; we’re not going to house you.

The Council used the Alice in Wonderland logic that this single mother was “intentionally homeless’ because she had ‘voluntarily’ left ‘her previous accommodation’ the privately rented accommodation with it’s broken boiler the private landlord refused to mend  with winter approaching.

The council seemed to have a convenient memory lapse in forgetting it was the council itself which had forced her own mother to evict her daughter, throw her out onto the streets with her kids  by threatening to make all of them homeless by taking the council house away from the woman’s own mother. This is a brutally corrupt piece of pure Kafkaesque wickedness on behalf of the council.

Another single mum with three kids had been evicted by her private landlord as revenge because she had asked him to do essential repairs like stop the excessive dampness which was making all the walls and ceilings covered in black mould – which is dangerous to health as it produces lung disease. She was intentionally homeless too, said the council.

I know of another single parent evicted from their house by the fraudulent USA bank Lehmans, who went bankrupt after causing the recent World wide recession by their criminally  dishonest, immoral, grasping and evil banking activities.

The council told that parent too they were ‘intentionally homeless’ on the grounds they shouldn’t have bought their house several years previously by using a mortgage as ‘they ought to have known they would be unlikely ever to work again because they were a single parent’.

I know the councils up and down the country are actually breaking the law ( I’ve checked the legislation) by using this ‘intentional homeless’ nonsense in the way they are, but more of that later.

Then I saw today’s (8th March 2015 BBC) news rabbiting on about the sixty thousand homeless people in New York right now, enduring the coldest winter weather, lots of ice & snow, for decades. New York is always very cold in winter anyway, so this must be awful if you’re living on the streets.

Then the news item featured a single mum in her early thirties working in the financial industry who still didn’t earn enough to afford the stratospheric rents of New York, so she was sharing  hostel accommodation with other homeless families.

This housing crisis is almost entirely caused by the banks ramping up the price of housing so they can lend ever larger sums of money. Housing in the UK is now about eleven times an average salary instead of the three times it was in about 1970 – before the greedy banks got into the business of mortgage lending by destroying most of the building societies.

But what should a house really cost do you think ? The average (slightly approximate) cost of building a new house is about £1200 a square metre. And the average British rabbit hutch of a new house is now only 76 sq metres, not big enough to swing  a cat, (see Daily Mail story here – http://www.dailymail.co.uk/news/article-2535136/Average-British-family-home-size-shrinks-two-square-metres-decade-increasing-numbers-forced-live-flats.html  ).

That would cost £91 200 to build, plus the extra cost of buying the land on which it stands. Agricultural land averages about £10 000 at the moment and with at least 16 tiny little rabbit hutches to the acre the land should cost a miniscule £62 or so, and it did a couple of generations or so ago.

But of course today, the bureaucracy and corruptions of the entire housing market and in particular that Orwellian gem of corruption ‘planning permission’ has made a nonsense of land value to build housing on and consequently it can cost millions per acre.

Apparently the average cost land with building permission per acre is now about £800 000 which makes one building plot to build a tiny rabbit hutch of a house on with the average of 76 sq metres for this type of house, is now about £50 000.

So after adding that extortionate £50 000 cost of the building plot to the build cost of  £91 200 we get the total cost of a new house for £141 200. Actually the average price is about twice that at present. That will be the £141 000 profit for the house builder then !

But, whatever the price new, shouldn’t the cost of a second hand house decrease at least a bit over time just like other second hand, used goods ?

Errrrrr, yes, I should think it ought to and certainly did before property started to become a good wheeze for Spivs & speculators from about 1950 onwards.

So, take my ordinary four bedroomed London terrace house of 200 square metres which would cost about £240 000 to build new today, plus the average cost of £50 000 for the plot of land, that would be £290 000 built new today. But actually the current value is about £1.4 million.

Anyway, back to the real cost of building it at £290 000. If the house lost just one half per cent a year in value ( about £1500 in the first year) the 135 year old house would have lost 67% of its original cost and would be about £194 300 to buy today. Or that rabbit hutch house costing £141 200 today would cost about £94 604 when 135 years old; (except it will never get to be 135 years old because that type of house is generally built so badly & shoddily it is unlikely to have life of barely more than 20 years).

So this example means over a theoretical life of a house off 200 years each inhabitant pays a modest half percent cost of the total building cost which  is £1 500 a year towards the building cost of the London house costing £290 000 to build in 2015. But instead, if you rent that same house today in London you will be paying the 6% of the 2015 ‘value’ the house has of £1 400 000 that landlords expect to rent homes out to tenants for and this will be a cool £84000 a year rent you will paying instead of £1500 previously mentioned.

That’s what it used to be like for centuries until the modern era, when the banks made houses repositories of value, rather than real homes to live in.

Bastards !

So, what with the builders building revoltingly cheap and nasty miniature homes too small even to contain normal necessary possessions and making extortionate profits of up to 100% and even higher, and the banks making billions of pounds out of expensive, often rip-off loans to people to buy homes, the entire country is in the icily corrupt grip of a bunch of thieving sharks really. And at the bottom are the people being forced to live on the streets or in repulsively inhumane  council ‘emergency accommodation’.

 

 

THE SOCIAL ENTERPRISE IDEA TO REVOLUTIONISE THE HOUSING MARKET WITH YOUR SUPPORT

March 27, 2014

Anyone interested in  setting up a housing co-operative to buy housing to then rent to our members along the lines of the idea below ?

 

My idea is to simply set up an organisation which would continuously seek crowdfunding  for redeemable shares offering (at present) about 3-4% which would be used to purchase rentable homes. The redeemable shares would enable savers currently offered laughable savings rates by the banks to be able to use this as a safe and reliable method of  savings offering much better returns than banks.

 

The tenants to which these homes would be rented  would also share in the profit their rent ultimately generates as it pays off the purchase cost. The whole idea is to enable the tenants to build up a sum of money from the profits of the organisation for them to use as a deposit to buy their own home.

 

If the funds borrowed to 100% fund the purchase are fully repaid by means of charging rent, at the end of a term similar to an average type of mortgage of, say 25 years, then at that point the organisation would own the asset outright. It would obviously then be able to offer a portion of the value of that asset to the tenant.

 

This portion would accrue from the moment the tenant commences paying rent and would be available to the tenant whenever he leaves  which could be at any time. He does not have to remain any longer than any initial short tenancy.

 

The tenant would always be paying a ‘market’ rent the same as any other tenant. But he would be getting something back that no other tenant ever does. He will be getting back a portion of the rent he has paid which he can then use as his deposit to go and buy his own home with an ordinary mortgage if he so wishes.

 

Instead of just paying rent to line a landlord’s pocket, tenants would get something back so their rent would be not completely wasted money dow the drain as it normally is for all tenants.

 

This model would thus enable a person with no capital whatever to accrue a deposit for their own home purchase, or even use this organisation to end up either a long leaseholder on  low rent if he wished to remain in the property. It could almost be viewed as a means of just turning an ordinary rental into a (different) type of mortgage for the ultimate purchase of a home. A mortgage where no deposit is needed at all. It’s just a rental that eventually just turns into actual home ownership.

 

It offers a means of home ownership which dis-enfranchises no-one and whereby any tenant turns progressively into an owner.

 

If set up as the legal concept of a Co-op, it is legally allowed to ask the public to invest in redeemable shares which  would pay an interest rate which might currently be 3-4%.

 

This is just a brief description of the idea, obviously there is a lot of detail to ramble on about, but I’ll leave that for  the moment as it isn’t needed until people want to know more and join.

 

Oh, by the way. I have spent a lot of time doing all the maths and the idea does work. You can have a look for yourself if you are interested & contact me.

 

With the help of the crowdfunding crowd, we can cut the legs of those greedy bankers and eventually take all their mortgage business away from them so that every penny people pay to live in a home goes directly towards actually paying for that home and not the huge profits for  greedy bankers.

 

This idea has wings; it could take off and fly !

 

 

 

 

 

CHILDREN – BANNED ! (Nasty, Pesky Things – Keep Them Them Out of Sight)

August 28, 2009

I just heard the most extraordinary thing ! My eleven year old son’s schoolmate just came to our house to ask him out to play today. He casually told my son he wouldn’t be able to visit him when their family moved into their newly rented house because the landlord had banned any children from being allowed into the house his parents were renting !

Think about this for a moment. An ordinary middle class, very civilised family, both parents working in extremely well paid jobs and with two sons of eleven and fourteen. They decided to sell their own house and rent a house from a private landlord for a year while they look for something attractive to buy.

They find a suitable four bedroomed house in an attractive village in Sussex and they would like to pay the fifteen hundred odd pounds a month to rent it for their family of four for a year.

But the landlord says other children are not allowed to be in the house. How utterly insulting this idiot landlord is. Why does he think he has a right to impose his warped, narrow minded, busybody control freakery on other people ?

What a pathetic, sad individual he must be ! No doubt he must be one of those dreadful people employed by the government whose full time job it is to be an interfering bureaucrat of some sort; paid a high salary to be an official professional control freak on one of those Labour Government pointless job creation schemes that squanders billions of pounds of our money.

Perhaps it is this that gives him delusions about telling people who rent his house what sort of people they can socialise with.

It does seem the countless horde of Labour Government employees – now most of the workforce and still rising – are living in a fantasy World where they all have the delusion their duty is to tell the rest of the population exactly what to do every minute of their lives; to control everyone with a positive blizzard of forms and tickboxes. Databases for everything and everyone with lists of all the details of the entire population’s daily lives. Video cameras malignantly following your every move, wherever you go. A Police State monitoring you, threatening constant arrest and State sponsored violence and thuggery whatever you are doing at the time, however innocent it might be.

My own son has been mercilessly persecuted by the goody goody interferers of the bizarre anti-child brigade ever since I moved to this Sussex market town seven years ago.

– A visit from the police after a member of the public reported my then ten year old son being seen playing in the park ‘too often’ and observed holding small cans of some sort in his hands. I was asked if this meant he was a graffiti sprayer because the cans might be spray paint. They were soft drink cans.

– Reported to social services by the headmaster of the boy’s school when an officious idiot of a teacher told him my then eight year old boy was actually allowed to go and play in the nearby park all by himself without an adult being with him.

– The subsequent visit from a social worker who told me that no child under the age of fourteen should ever be allowed out without an adult being with them !

– The retired ex-headmaster of the local secondary school who is the Chairman and gimlet eyed controller of my allotment association telling me allotments were actually dangerous places for children and they were not allowed there unless their parents rented an allotment.

Even then they were absolutely forbidden to leave their parents allotment and go anywhere else on the site. In addition, the allotment rules would not even allow children on their own parents allotment unless they were actually working on the allotment. They were not allowed to play on their parent’s allotment, only work.

No visiting their friends on nearby allotments then. Hard labour only – or else !

– Official letter of warning from the boy’s headmaster at school that he had been seen riding a bike to school without a ‘permit’.

– The amazing Pizza restaurant – “Sorry Sir. We don’t allow children here except at lunchtime”.

And so it goes on – endlessly. These are only a small fraction of the barrage of anti children complaints I have had to deal with from a population of miserably humourless, self centred, misogynistic fools nurtured into existence by the evils of a politically correct socialist mindset which has gripped the UK in it’s deathly embrace as the Labour Government systematically wrecks what used to be the best country in the World to live in.

Now, it is rapidly becoming one of the worst.

It has also been officially branded by the rest of the World as one of the most unpleasant countries in the World to be a child.

BLOGSURFER