I hate this about our system. To combat this i am sharing equity with the guy that rents a room. I'm tracking how much his rent payments go to paying off the mortgage (which I can make myself, it's just a larger house with rooms to spare) he will get a check based off the percent he paid off on sale, or a percentage of revenue if we end up keeping and paying it off years later. Finance people think I'm crazy giving up that much equity. I just hated tossing rent money to the void, so I figured now that I'm in a position to change my little corner of the world, I will.

[–] Zink@programming.dev 31 points 2 months ago (1 children)

The finance people (and sadly, many many others) think making the number bigger is a more important and worthwhile goal than making your corner of the world a better place. So good on you for being a compassionate human!

[–] Cowbee@lemmy.ml 7 points 2 months ago (1 children)

It doesn't matter what individuals think in the system, the system moves regardless because if they don't take advantage of it, others will and will supercede them. In this manner, Capital functions almost like a god that is actually worshipped.

Individuals being compassionate within a horrible system will not influence the system overall, though it doesn't mean compassion isn't worth it.

[–] Zink@programming.dev 4 points 2 months ago

Yeah I agree with that. Relying on individual compassion to fix real estate probably makes even less sense than relying on churches and charity to fix poverty and hunger.

I’m still in favor of making things better in one’s little corner of the world, because even just looking at it selfishly it tends to make your life and your mental health better too.

[–] AeonFelis@lemmy.world 9 points 2 months ago (1 children)

Have you consulted with a lawyer about this? The laws differ from place to place, but I'd be worried the equity you give him may also grant him some sort of claim on the house, which would mean he gets a say on financial things related to the real estate. This can complicate things in the future.

Also - what does "percentage of revenue if we end up keeping and paying it off years later" mean? That after he leaves you will pay him for his share in your house?

[–] ThatGiantCameron@lemmy.world 2 points 2 months ago (1 children)

I have and officially on paper he is a normal renter. Since this kind of deal doesn't happen there's really no system so his payout is a handshake deal on sale, as of now only around 8%. As for if the property is kept, once fully paid off he would receive a yearly dividend of what was made off rent, which wouldn't be much as we won't charge much above operating and maintenance cost. Truthfully keeping it is the less likely option as we would like to sell so he can walk away with a decent down payment on his own place.

[–] AeonFelis@lemmy.world 2 points 2 months ago (1 children)

So if you don't sell it, and instead rent it out to other people, he'd get a portion of the rent the future tenant pays? And I don't supposed said future tenant will also get equity?

[–] ThatGiantCameron@lemmy.world 1 points 2 months ago

I'm still working on a good way to provide value to a tenant for the rent they pay for a paid off property. Once it's paid off I only want to be charging what it takes to maintain plus a little more for unexpected problems. But again, keeping it is the less likely scenario. Down payments on their own place is the goal!

[–] RadicalEagle@lemmy.world 3 points 2 months ago

That's super cool, I've wanted to do something similar like this but never have had the opportunity.