The Rise Of A New Asset Class: A Home Ownership Investment

[William Hull]

Does your home have value, but you're uneasy about mortgaging it to gain some actual capital? Other homeowners and couples have felt the same way, and one family in particular had some success. The Scotts met with a company specializing in Fixed Income iShares, a type of ETF. Also called a home ownership investment, these investments give home buyers or home owners some cash, using a partnership formed by the investor and home owner. The homes are used as an asset, alongside pension funds and endowments, to create quite a compelling investment for most institutional agents. The home ownership investment deal isn't a type of loan, but instead truly an investment in the home. This creates some long-term potential, and matched with the other two major assets, affords a degree of safety and predictability. Unison, the largest company for home ownership investors, has been working closely with lenders and regulators to push this new type of financing throughout the United States. Currently there are just 13 states working with Unison, but they plan to move their operations - and their home ownership investments - nationwide very soon. In fact, 3000 additional deals and partnerships will take place across the country by the end of this year. Home owners around the country can expect to see some form of home ownership investing come to their neck of the woods sooner than they think!

Key Takeaways:

• Unison has brought unique programs to market in HomeBuyer and HomeOwner.
• When rates are low, pension funds need to take on greater risk to achieve goals.
• Unison's home ownership program is not a loan, rather an investment. They only receive payment when the house is sold.

"Today, a home ownership investment provides cash financing to homebuyers or homeowners from investors seeking long-term price exposure to residential real estate. This new concept aligns the interests of the homeowner and the investor as partners"

Read more: https://www.forbes.com/sites/omribarzilay/2017/04/13/the-rise-of-a-new-asset-class-a-home-ownership-investment/