Dear Monty: We are nearing retirement age and thinking of changing our housing situation. We see people we know or hear about making choices that surprise us. There seem to be many more living options today. There also appear to be more paths to get there. Selling a home, ownership choices, renting and where to live are examples of subjects that seem to have become more complex. It feels like something has changed, but I can’t put my finger on it. Real estate didn’t seem this complicated when we bought this house. What is causing this change?
Monty’s Answer: Two significant changes in our society may explain what you feel as you near retirement. The first event was the introduction of the internet to the world. There is a good reason it is called the “information age.” There are countless examples of things you can do today that were likely not possible when you bought your house. The worldwide web (that’s what the “www” in www.dearmonty.com stands for) has shrunk the world. The proliferation of information gives a person new knowledge, opportunities and choices.
Innovation has been happening for eons (the wheel, electricity, gunpowder), but the internet has exploded innovation. According to wpforms.com, there are nearly two billion websites on the worldwide web today.
Creating startup companies on the internet has become an industry in itself. Venture capital, accelerators and incubators provide locations where these creatives build things people need or something they don’t even know they need until they discover it. There is a sector that has arisen called PropTech. The name suggests property technology, so PropTech is the business of real estate innovators.
Here are some examples of reasonably new PropTech companies and what problem they aim to solve. The list is just a tiny sample. I have not personally used any of these companies, so this is not a recommendation. It will be interesting to see if they all survive. Many startups do not make it.
- Pacaso offers co-ownership. You buy an interest in the home you want. They manage it.
- Knock’s guaranteed sale plan sets you up to buy a new home before you sell your old one. Orchard also uses this model.
- Accept is a lender that makes you a cash buyer.
- Opendoor lets you sell your home for cash.
- Divvy Homes lets you pick the home you want. They buy it, and you rent to own.
- HomeFundit -- Need money for a down payment? They can help.
- Unison -- Need money for anything? They buy an interest in your home.
- Landis -- They buy the home you want; you rent it back while saving the down payment.
- Home Partners of America -- Choose a home and rent it; buy it if you like it.
- Landed is a mortgage lender specializing in certain occupations.
- Loftium -- You rent their house, rent out a room and save money.
Some homebuyers have raised a down payment on fundraising sites or crowdfunding websites.
Here is a website that helps some first-time home buyers find down payment grants. Here is a grab bag of other sites. I did not view them. Emberhome, Sharetini, Point, June Homes, Noah and finally, Hometap. We live in exciting times.
