Various schemes exist to allow the poor and the unfortunate to buy their own homes. Maybe we could reformulate and reuse some of these ideas to address the issue of affordability for regular middle class folk.

One such an idea could be to split the ownership of the property from the improvements. Ownership of the property could be securitized (carved up in a number of shares) and freely traded on any public market (perhaps even on the NASDAQ). Ownership of the improvements (dwelling) will follow the more traditional route, and be funded via a mortgage. The person holding the mortgage will also be responsible for the upkeep of the property, and for general insurance.

This will allow middle class folk to afford homes in areas like New York and San Francisco where land has become prohibitively expensive. Since the land is available as shares, the home owner could always purchase all the outstanding shares if his/her financial situation improves.

Regarding the property itself - many people invest in land as a low-risk way to build capital. This will lower the entry cost to this kind of investment to everyone. This will also allow everyday folks to invest in their property of choice, rather than having to settle for a fund or in REITs.

What do you think of this idea or comment?
(You can change your vote at any time)

I agree

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I disagree