If these companies can change the model of home ownership, decrease the transaction cost, or increase liquidity the asset class should rise in price. Granted these aren’t the fundamental drivers, it should still lead to a rise.
Looks like a large pile of horseshit camouflaged with tech new speak and bogus ownership ideas. When the tide goes out anyone that has fractional ownership or is highly leveraged will be shown to be swimming naked. And will loose their equity. Divvy is ditzy.
With the current 20 % downturn. This is a disaster.
Hopefully there are very few of these types of nightmares available…
Divvy is one example of this. It is a service designed for people who, to use the company’s own words, are “not ready for a mortgage.” Divvy offers them an alternative pathway to ownership: you pick out your home, Divvy buys it, you put down 1 to 2 percent of the selling price (much cheaper than your traditional down payment), which goes directly into a fund for your future down payment. Then, you rent from them at market rate for about three years. But 25% of that rent is put toward a down payment nest egg, rather than into the landlord’s coffers.