Whangarei investors can now get into the Auckland housing market - without having to stump up with the total sale price of a house.
Auckland startup The Ownery is offering a vehicle to enter the Auckland housing market, with investors putting in as little as $500.
The investor selects a property from the portfolio listed on The Ownery's website. Each property becomes a registered company and each company will own only one house. Shareholders can exit anytime by selling their shares with no fee - unless the shares are sold to a third party.
Shareholders can request the house-share company buy their shares at current published value. Share valuations will be updated monthly based on QV data and twice-yearly from a registered valuer.
The business model is similar to residential equity crowd-funding but doesn't require The Ownery to have a crowd-funding licence. Rather, each company has to put out a product disclosure statement that requires more disclosure than crowd-funding and will be monitored by the Financial Markets Authority.