I like to call it the world of real estate transactions 3.0, because I would never have dreamed that everything would change so quickly, I’m still used to the old way on so many things but luckily with this job I’m upgrading to the speed of optical fiber. Unfortunately not everyone has the budjet to buy house and on the market are being born (more than start-ups as they call themselves), real investment companies to facilitate to those who buy a home without having the basic requirements to get a mortgage.
In America, three companies such as Divvy Homes, ZeroDown and Flyhomes have created a business model where companies buy on behalf of customers and turn in rent to consumers through a contract, which allows the end user to accrue a credit of the value of the house (usually a 15% over a 5-year period) so you are eligible to access a mortgage.
Prices for the apartments in question range from 100000 euros to 450000 euros, where the company earns both renting and the appreciation of the property at the sale time.
Specifically, they use the big data science to evaluate the best price at which to buy the property and how much you will appreciate, value over time using algorithms. These new forms of real estate transactions are emerging because banks are no longer lending money (see the 2008 subprime crisis), but beware there are also risks if the customer could not or did not want to buy after the end of the rental period thus ending up paying more than he would have paid if he had rented.
These companies claim to subject potential buyers to a financial and credit check, where in the end precisely, it will create the specific price range, at that time the startup will buy the house in cash for them thus obtaining a discount, the movie is:more property they buy much more will the discount.
Zerodown, for its part, points out that buyers can pay rent more than they would normally have paid, but they have the opportunity to live in the house they want and spend money that would also be used for the mortgage on payment.
Flyhomes provides agents to help buyers find a home and sign them up for a potential mortgage, later once the solution is found through big data technology they buy cash, at that point buyers pay the rent to Flyhome already being able to transfer to the property, until the mortgage arrives (times are 2/3 weeks).
Those who sell the property are protected by the intermediary who guarantees the buyer both in economic terms and by guaranteeing him certain sales times. The transaction model is completely different from normal way we are used to do,I think these pioneering companies have the potential to reap the success of platforms such as Airbnb, Booking etc…