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advantages. There’s no manager because the property is self- managed. There are no vacancies. Worries about vandalism are reduced because the property is occupied. A big chunk of the cost and irritation associated with property ownership is eliminated because there is a resident owner. Seen another way, resident and investor interests are aligned. Resident owners will take care of the property because it is, literally, their property. They have an ownership stake. When the property is sold any profits will be divided among the owners according to their agreed interests. And if there are losses they too will be divided. The net result is that neither profits nor losses are maximized, but there is less risk for both parties. Housing As A Service? The big negative is very simple: Are people willing to share? It seems that they are based on the trajectory of
home that the boomers own to enable younger generations to share in the benefits of ownership with people they know, love and trust. This helps the next generation build credit and provides an easy entry into homeownership.” Pros & Cons No type of investment is without risk and that surely includes shared equity. That said, shared equity offers an interesting series of twists. For owner-occupants there is the comfort that with a strong financial partner a mortgage application will sail through the system, less cash will be needed at closing, and they may be able to purchase with more down. For shared equity arrangements with relatives there’s the particular benefit of helping a family member. And, in some cases, the not-so-minor benefit of getting back the rec room.
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From the investor’s perspective shared equity offers a number of
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JULY 2017 | ATTOM DATA SOLUTIONS
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