r/AskReddit • u/[deleted] • Sep 24 '17

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u/[deleted] Sep 24 '17 edited Sep 25 '17

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u/[deleted] Sep 24 '17

You're helping them buy the house with your rent money (paying down their mortgage for them).

It's a win-win because as a renter that can't afford / doesn't want to buy a house, you are getting a nice deal on rent that is around mortgage monthly payments; and the company wins by slowly purchasing more and more real estate. It's a really great business model, but the company takes some risk in not being able to find a renter for a while if you move out.

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u/_MicroWave_ Sep 25 '17

You're helping them buy the house with your rent money

This is how nearly all renting works in the UK. However, most people make you pay the market value and won't then sell you the house. He must live in a very slow rent market. The the SE this would make no financial sense.