Pride in homeownership is alive and well, and living down the street from you in a crowdfunded rental property. One of the many benefits of crowdfunded real estate investment is higher quality tenants. Why exactly is that you may ask? Tenants that own shares of the crowdfunded property they’re renting have way higher stakes in protecting the asset they live in. If they’re a co-owner of the property, they’re much more likely to maintain their rental to the highest possible standard to protect their asset. They do own it, after all.
Crowdfunded real estate investing through a platform such as addy allows renters, that are also co-owners, to experience that same surge of pride that comes with purchasing your first home – without all the responsibility and years of savings to put together the down payment. Co-owners renting units is a win-win situation for everyone, particularly the asset itself. Renters live in the asset and walk through it everyday. They’re much more likely to catch problems before they get worse (think of the water damage unattended-to leaks can cause over time), or even just tend to a stained carpet in the lobby they noticed on their way in the door from work. What’s more, because renters are far more likely to invest time and effort into maintaining where they live if it’s also an asset in their portfolio, this more diligent care of the property translates into a higher likelihood of preserving, or even increasing, the value of the property itself.
Most of us either now or have been renters at some point in our lives, and if we are being honest, we’ve all had a moment where we’ve paused before putting a nail in the wall to hang a picture, or right after dropping something heavy on the floor and creating a small dent, but then immediately shrugged it off because “hey, I’m not going to be here forever.” When renters that are also co-owners of a property find themselves in the same situations, they’re much more likely
Getting Creative About Building Equity
Changes in our economy and housing models have combined to create the need for new ways of thinking about housing, owning, renting and investing. Since buying a home on your own is not a viable option for many of us, we need to get creative and devise new ways to build ownership equity in inflated markets. Remember also that it’s not only inflated values that are keeping people from buying homes on their own. Millennials and Gen Zers typically share a mutual attraction to the financial flexibility that goes hand-in-hand with renting. They’d love the ability to travel, relocate if necessary, and enjoy small doses of well deserved leisure time, without worrying about scraping up enough for a down payment, or keeping up with mortgage payments. In fact, they tend to view traditional single-family home ownership as more of a liability than an asset. addy recognizes and understands these socioeconomic realities and provides both large-scale investors and micro investors alike with an innovative and affordable pathway to building equity and wealth while still having time to enjoy active fun-filled lifestyles.
Homeownership for the 21st Century
In recent years, home values in Vancouver and throughout much of Canada and North America have risen much faster than incomes. You can either obsess over the fact that you may be locked out of the goal of traditional homeownership, or you can look to take non-traditional routes, such as crowdfunded investing, toward achieving that goal. Co-ownership of real property through crowdfunding offers a new model for home ownership in the 21st century. You can still feel pride in ownership without being house poor or tethered to lawn mowers and snow blowers. And even if you do not rent in a building you invest in, you still stand to benefit exponentially by having a block of units occupied by people who are co-owners in the building.
Successful real estate investors all agree that long-term quality tenants are a key ingredient to any formula for building wealth through real estate investment. Why not be your own high-quality tenant by owning a share of the building you rent in? With only a modest investment in a crowdfunded project, you can become that person who is on the road to earning passive income while taking great pride in the fact that you manage to own and rent at the same time.