A Novel Path to Homeownership
ฝัง
- เผยแพร่เมื่อ 30 ก.ย. 2024
- Homeownership is an integral part of the American dream. But it’s fundamentally broken today. In this talk Adena Hefets, cofounder and CEO of Divvy Homes, explores the factors contributing to declining rates of homeownership. She makes a case for redefining what it means to own a home, how consumers get access mortgages, and what the future path to homeownership might look like.
Highlights
Defining traditional homeownership [1:25]
Examining and comparing the traditional options of financing vs the emerging options [2:35]
The shared economy’s influence on real estate [3:00]
A brief history of the mortgage industry; the rise and fall of homeownership [3:26]
Adena shares stats on the groups most impacted by the housing crisis [5:19]
The 3 key factors impacting homeownership rates among millennials [6:17]
How entrepreneurs are rethinking the path to homeownership [9:20]
How Divvy Homes is changing access to homeownership [9:52]
The key benefits of the Divvy model of homeownership [12:07]
Pull Quotes
“When renters think and act like homeowners, it means you have lower vacancy, lower turnover, and as a result, lower maintenance costs per home.”
Very cool concept here of hybridizing renting and owning to create an in between stage 🏠. While the future plans highlighted at 12:34 seem like fine add-ons, I think the ideal path here would be to turn this into a true platform by finding a way to bring sellers into the mix. If they could incentivize sellers to participate in the platform, Divvy could lessen their exposure to the risk of a housing market downturn and make the company much more asset light. Without establishing themselves as a dominant platform and building network effects, they're vulnerable to a company like Zillow or Opendoor simply adding a rent to own feature to their already more robust offerings.
So you're basically a mortgage bank minus the regulation.
What could possibly go wrong.
expound
right because regulation is the answer for everything
This sounds like a great idea. You are basically renting while building equity in the home until you qualify for a mortgage. And even then, you can keep the flexibility you started with if you are not ready to commit to a mortgage yet. I hope this becomes a standard in the industry.
I like it... however this is just debt packaged differently. Not very innovative- just a new way to put more debt into the economy.... no different than NINJ mortgages. Both get you to own a home. NINJ is obviously putting more risk on the bankers - and in this model to risk is slightly less for the lender since presumably borrowers have jobs.... it’s crazy this is where VC money is going right now... I don’t see this being a great play when home prices and jobs are at their all time high.... not sure this will be a winner when the economy hits its next recession
Long term... I like $0 down mortgages. Keep it simple!
The big problem I'm seeing with homeownership and the younger generations (Millennials, GenZ, etc) is that they simply don't want to own a home. The experience economy is on the up. No one wants to be tied down anymore with a home, or have the problems of everything that comes with a home (i.e. furnace breaking, leaks, lawn care, etc.). It's a great idea for a small subset of people, but I don't see the home ownership increasing as we move forward. As you had mention with Uber. Why own a car, when you can just call an Uber to get from point A to point B. Same thing with a home. People just need somewhere to live, not necessarily own it.
To clarify, the target customer for Divvy et al isn't those that can't afford rent. Its those that have a salary high enough to afford rent PLUS an equity payment.
I think the equity payment is part of the rent, not in addition to it. So 2% downpayment, plus rent (which is divided into 2 parts - you purchase fractional shares with part of the rent money and the rest goes to Divvy as profit). We have a bit of a similar scheme in the UK but it's run by the government, we call it Shared Ownership. But Divvy sounds more flexible and affordable.
@@j6873 To my understanding you get 100 percent of the equity towards the down payment -If you choose not to purchase at the end of the 18 month or 36 month lease you can cash out- minus the 2 percent fee used to put the house back on the market. Divvy only profits off of the market rate rent- the add cost to the monthly rent is the actual equity and or down payment.
It's a great concept, the devil is in the details. How are they valuing the houses? What kind of a premium do they charge for this service? Is the premium enough to worth the risk of taking on ownership of that home? And will the users see enough value in that flexibility to pay for the premium?
likely scaled accordingly. she said they use specific algorithms to determine a lot of this stuff, so i'm sure they address the values up front and scale each contributors share accordingly.
There is a company called progressive leasing that is doing this in retail. Rent to own powered by AI.
Interesting. I know a bit about asset valuation and it varies based on the economy. I’m curious about how the company is preventing a lot of buy backs/cash outs at the wrong time.
Are you based in Boston?
Another rent-to-own scheme... but with a website! Lets call it a tech startup!
Just feel it and it gets real
As a startup founder i have a real problem in getting a mortgage! The problem I have with shared ownership models is that “cheaper rent” is actually pretty negligible when comparing to market rent prices for similar places close by - based on the handful of times I’ve checked*.
Just waiting for the all knowing onnnicompetent ai to kick in. Google?
It’s only available in big cities!!
Recommendations engines recommend properties to rent!!!
She's amazing,great presentation!
I loved the concept.awsome
not sure if she did any practice runs but she used the word "fundamentally" x 30000 times. regardless, excellent strategies. we see fracturing of the home ownership and building models, most notably with ADUs and their explosion. I think this exemplifies the next wave of making home ownership more equitable.
Rich dictating to the lower orders.