Millennials often feel we have no chance to break into the housing market, but this new startup is allowing us broke folks to own homes too — or at least part of one. The new company will let people buy shares in Vancouver real estate for as low as $1 a pop. This way, you can invest in housing no matter how little money you have — as long as you've got a single dollar.
Canadian-based start-up addy just launched on Wednesday, July 15, and they're already getting tons of support.
One of their co-founders, Stephen Jagger, told Narcity that Vancouver real estate "pricing is outrageous."
"A lot of people are completely locked out of the market. We wanted to find a way to enable people to get into the asset class of real estate," he said.
With Jagger's new company, you can buy part-ownership of specific properties and become a landlord.
How it works, he said, is the company buys up real estate and splits the property up into a bunch of tiny "shares" worth $1 each.
People could then buy from $1 to $1,500 worth of shares, with each investor getting a portion of the rent depending on how many shares they own. After a certain amount of time, they could also sell their shares for a potential profit.
They've bought one residential household in Vancouver so far, with a second property in Chilliwack going live for investors starting Tuesday, August 11.
It's worth noting that investors won't get to live in the properties they buy. For example, their latest property is being used commercially by Starbucks.
"You'd basically be the landlord of Starbucks, which I think it's kind of cool," said Jagger.
To sign up you create an account on their system, browse to the property you want to invest in, and provide the funds. No fees attached, said Jagger.
He said he spoke to a single mom recently who was super excited about the startup. "She never thought she'd be able to own Vancouver real estate," he said.
"We are able to help these people get involved in something that many of them thought was just not possible."
With tons of support so far and lots of properties coming in the future, it's looking up for home-owners looking to get started in B.C.