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When one is unable to obtain a housing loan, the door to home ownership is impossible to open.
But what if a company made this enticing offer to renters: it would buy a house of her choice and rent it to her, with the promise that she could purchase the property for a fixed price if she came up with the money within five years.
Say hello to the rent-to-buy model. Yup, it's not a typo.
It's A Hot Market, But. . .
Today, companies pushing such offers are hot in Silicon Valley and Wall Street.
But is the rent-to-buy model a financial innovation that will unlock the promise of home ownership for those who have been shut out of mortgage finance?
Or is it primarily a way of sourcing properties to create a new breed of corporate landlord?
Deep dive into an insightful FT coverage this Thursday morning. 👍