Ask HN: Where can I live off 1k USD per month?

Re:Ask HN: Where can I live off 1k USD per month? by rwmj on Thursday August 26, 2021 @04:14PM (#28320046)

The maths behind this is similar to UK leasehold. With a leasehold (which is a truly terrible system) you pay as if you're buying the flat, but actually you only have a lease usually with a very small annual payment and some management charges. The catch is the lease only lasts usually 99 years and for various legal reasons you have to renew it before it drops below 80 years, and that costs a bunch of money.

Leaseholders are called "homeowners" but they don't really own the home in the normal sense and are closer to long term renters in their rights.

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Re:Ask HN: Where can I live off 1k USD per month? by jokethrowaway on Thursday August 26, 2021 @07:24PM (#28322328)

I disagree. The crucial difference is that you don't get your money back with a UK leasehold. It's basically renting with extra steps.

A freeholder is basically renting out a house for 99 years and the leaseholder has to pay all the rent upfront (+ renewal). On the upside, if the freeholder wants to sell the house he's required to offer it to the leaseholder first.

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Re:Ask HN: Where can I live off 1k USD per month? by mattbee on Thursday August 26, 2021 @07:35PM (#28322414)

Usually 99 years? I bought a new leasehold in 2004 with a 999 year term, and I don't think that's unusual now. The government announced plans in January that leaseholders will have the right to renew leases for a standard term of 990 years, as well as capping ground rent. So I hope the worst abuses of UK leasehold are on their way out.

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Re:Ask HN: Where can I live off 1k USD per month? by agent008t on Friday August 27, 2021 @05:37AM (#28325835)

A 999 year term sounds like a long time, but time flies; before you know it, 980 years would have passed, and you would be wondering why you didn't buy a freehold instead...

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