M. Shire's
Ideas

Stop Renting

M. Shire's
Ideas

Stop Renting

M. Shire's
Ideas

Stop Renting

M. Shire's
Ideas

Stop Renting

M. Shire's
Ideas

Stop Renting

M. Shire's
Ideas

Stop Renting
Page 1

Stop Renting with help from the Government

Rent to Own.

What if there was a way that we could significantly reduce homelessness? We could reduce the number of people in America who have been forever burdened with paying rent their entire lives. Not only for the paying tenant but for their children. They can finally get out from living under poverty, and can achieve some generational wealth and value from years of hard work. What if you could be rent free in as fast as 10 years?

We know people have been paying rent, for twenty, thirty, forty years, to large corporations of rental properties. They get no real value out of it except for a temporary place to stay, weather it is apartments or houses. You can drive anywhere and see new apartment buildings being built all the time. People say this is good because of course we always need new housing.

Well I believe there is a way to break free of this cycle of perpetual struggling and barely making ends meet. This would mean more money to spend on food, health, clothing and education. With that little bit of more income not spent on rent they could help their families and everyone would benefit.

Instead of being built by a for-profit corporation it can be funded by the government, and NOT by Big Banks. So for example a new apartment building with 100 units goes up, and it cost $10 million and one year to build. The government Housing Management starts renting it out ... let's see on average $2,000 per unit (some are 1 bedroom some are 2 bedroom), They get $200,000 per month. After financing costs and interest rates, they pay back $11 million, in 55 months, and that's less than 6 years.

I think the government could reduce the rent rates slightly and plan to pay it all back in exactly 10 years. So the tenants / owners Each pay for their unit in exactly ten years and the rent would be less than the average rent in that area. Win-Win !! For example if you paid only $1,000 a month, then in 10 years that would be a $120,000 that would go towards buying your single apartment.

The genius part of all this is that it's not money spent and gone FOREVER. It's almost exactly like school loans where everyone is PAYING IT BACK. Instead of section 8 and welfare that subsidizes rent, and the money is gone out the window to the corporation landlord, the money is paid back to the government and can be used again to make the next housing project.


Page 2

Stop Renting with help from the Government

Reasonable Management.

There will be a few big rules that will have to be followed because it is a government project.

1. Every tenant will have to pay a main- tenance type fee, like an HOA, which would cover a small staff of management, building maintenance and the cost of insurance to make sure the entire building is insured against fire or destruction. The managers would take everyone's monthly rent and make sure it goes towards the PURCHASE of your apartment unit. Financing would be handled off-site by some government loan housing fund administration (like school loans). Let's say for example it was $300 a month for this building maintenance fee. That would bring in $30,000 a month for the maintenance, the managers, and insurance. Should be no problem if the managers don't NEED to make a 100k a year as a wage salary each.

2. For everyone who lives in these government assisted apartments, it must be their single primary residence. In other words there will be no sub-renting / subleasing. This will get us away from some company trying to profit by renting. With this rule it must be the only place that you are living.

3. If you have to move for one reason or another there is some options. You can transfer the ownership of your apartment to a family member or friend but that housing must also now be their single primary residence. And it has to be a person who can qualify to make rent payments. Again you can't use government assistance to make your payments, and you need to show employment. The exception is if you have retirement income.

4. If you can't transfer your ownership, then you can get a "sale value" equal to something like 50% of the equity that you have put into it. Basically defaults to a rental subsity for the time you were there.

5. After it's been paid in full, like 10 to 20 years down the line, you will be responsible for the maintenance of your own apartment. The building maintenance will take care of all common areas. If you ever sell it the new owner will have to show it to be their primary residence.

6. To make it fair to the demographics of the local area, the demographics will have to be represented in this apartment, That means if , for example it's 30% black Americans, 42% latinos, Then out of 100 units, 30 units should be for black, and 42 units for Latinos. Nobody can say this is unfair because it will truly represent the local demographics.

Some people will complain and might be alarmed thinking that it's too socialist for our country . but I think we need to help each other out - we can't just be complete capitalist. That has gotten us a failing economy, homelessness, joblessness, and serious social inequity. The government right now is helping us with a social program which is housing supplement called Section 8.

The other is called student loans. The government will now loan out 50k or 100k to people to go to college for 4 years. Then they have to pay it back over the next 20 years. So yes I say thank you to the government for helping us with education. They can also help us with housing, which will reduce poverty which in turn reduces homelessness.


Page 3

Stop Renting with help from the Government

A little socialism after 200 years of capitalism.

The government doesn't HAVE to own these apartment buildings do they ? Once they completely paid off after 10 years they could go on and make more more and more.

Even more radical idea ...

Or alternatively ... What if the government did own 25% of the apartment buildings in a city? Instead of some Billionaire Corporation? That's OUR money. All of that money paid back as rent would be great revenue for the city. The Citizens of America could therefore pay less taxes. If this really worked out, it could even mean ... FREE health care paid for by government from rent money. It would be a little socialist, but it would really help society. Don't worry though, we will still have capitalism for 75% of apartments, so the billionaire companies could still make money.

Another thing to consider is ... Imagine if we did the same thing with commercial real estate. OMG game changer. So instead of small businesses renting to some commercial real estate company forever in a strip mall, they could own their own space in a building. Then you'd have lower cost of goods. If it was a restaurant, they could lower costs of all menu items because they wouldn't need to spend $30,000 a month on rent. So it's kind of a win-win.

Why would Americans be afraid of a little more social programs that help the people? They always comment about free health care in Canada and Sweden. It's not un-American.

What we've been doing is making the super rich, richer and richer, every year. Rents go up according to some inflation index the billionaires and the banks decide on. They are vacationing someone on their 15 million dollar yacht. That's not fair to me. Why make them rich? They don't really care about us. My statement is ... Don't make the billionaires richer. First of all, the billionaire upper 1% are not doing anything to actually help out the 99% people. It's always all about Money. They don't care about the little peons, the majority, the people struggling. Should we feel sorry for those billionaires who might made less this last year than they did 10 years ago? They're not going to go broke. They don't pay taxes. They might have to cut back on buying that new yacht.


Page 4

Stop Renting with help from the Government

A "Robin Hood" Movement.

But, we don't have to take from the rich to give to the poor. Instead we can stop giving our money to the rich and keep it ourselves. In that way, we are just withholding it from the rich, but legally. Essentially, we owe it to ourselves, to our families, and the future generations, to be free from poverty and the chains of having to work every day of our lives.

Rent Statistics.

The state with the highest number of renter-occupied homes is Washington DC (58.9%), followed by New York (45.9%), and California (44.2%)

In the San Fernando Valley, CA, the 49-unit Vanowen Apartments, due for completion in late 2022, is the first of the HHH Housing Innovation Challenge projects. The 49-unit permanent housing project is expected to cost $21 million and open in late 2022. Proposition HHH was passed in 2016 and enables the city to issue $1.2 billion in bonds for the development of permanent supportive housing units for people experiencing homelessness.

This is the best they do now ....
"AFFORDABLE HOUSING" .... In exchange for providing financial assistance for acquisition and rehabilitation projects, the agency is able to secure long-term deed restrictions to ensure the units remain available to low- and moderate-income households.


https://www.ochousing.org/..... OUR MISSION : Orange County Housing Authority (OCHA) administers federally funded programs to provide rental assistance to qualified tenants in privately owned rental housing. The largest such program is referred to as the Housing Choice Voucher Program. Participants who receive a Housing Voucher can use this rental assistance in a variety of rental dwellings and locations with almost any property owner who is willing to participate in the program. So ... all rent still goes to the "property owner".

.... example ... Acaciawood Village Senior Apartment Homes. 1 Bed 1 Bath $1,800 (Built in 1988 , 123 units/3 stories) One senior I talked to said his rent was only $300 but his apartment is $1,500 so the California government is supplementing $1,200 for his rent every month ... giving it to the Rich Landlord !!

Why don't they just buy him his apartment ? Then in 10 years they never had to pay again...



email me at:
blackcat.oc.mail.com

Copyright - ©2024, Michael Shire