
Equity Accrual Renting – A new form of home ownership — YC-R: New Cities - Kinnard
https://docs.google.com/document/d/1QBINYkFfWc2XJLQw9Gge6qXyxGPqhEuAE01gjOSBrWw/
======
Finnucane
Do these guys understand that rent-to-own financing is already a thing? The
concept got a lot of play when the Great Bubble blew up and left a lot of
underwater borrowers in foreclosure. This article doesn't address title issues
or other problems with rent-to-own. Or even the vagaries of the housing
market. What they're describing is a 20-year mortgage on a schedule that pays
down 5 percent of the principle each year, with the title presumably held by
the seller throughout. A homeowner's equity is the market value of the house
less any debt still owed on the house. Market value is subject to volatility,
so assigning equity by schedule makes no sense.

------
Kinnard
Please do give any feedback you have.

