Need some cash for unexpected financial life event? Know you’re not moving anytime soon but want to remodel your home?
Get the money by selling an equity share of your home! Well, you can’t yet but investors are gearing up for this new type of market buying. Here’s more from EconomicPolicyJournal.com:
One Rampell idea is to set up a fund that would invest to co-own houses. “They could own 10 percent or 15 percent of your house, so you don’t have to borrow as much,” Rampell told NYT. “I think there’s a lot of room for more of those kind of new asset classes.”
The originality of the idea seems to make is appear somewhat insane, but I think it could have some sound uses.
Rampell is apparently thinking about such financing in terms of aiding in buying a house:
Mr. Rampell said, such a fund could invest to co-own houses in, say, pricey Palo Alto, Calif., making it easier for prospective home buyers to make down payments and reduce their mortgage burden.
I find this idea to be a bit crazy. People need to stop using their homes as an ATM. Remember the housing bubble that burst? It will happen again if ideas like this become popular.
Yes and No. You’re actually selling a stake in your home. Investors in this process will be a little more picky than other processes related to housing meltdown.
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