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· Posted on
February 21, 2024

Rent-to-own startup OwnHome raises $31 million and with house prices soaring...it checks out

The Australian property market is so 🔥🔥🔥 right now...

What's the key learning?

  • Aussie 'rent-to-own' startup OwnHome has closed a $31 million investment round
  • Rent-to-buy allows buyers can lease a property with the option to buy it at a later date
  • This allow tenants to build up equity in the property as they pay rent - which helps newcomers get into the property market.

Background: The Australian property market is so 🔥🔥🔥 right now. Median house prices are rocketing, and the average number of years in the workforce before buying a home has increased from 2 to 12 years. Ouch.

What happened: Cue: OwnHome. An Aussie startup in the 'rent-to-own' business that tries to help Aussies get into the property market.  

What else: So far, they've only proven this model with 9 homes, but they just closed a $31 million investment round. Not beeeehd at all!

So what's the key learning?

💡With a house deposit so hard to achieve these days, a number of new models have emerged to help people get into the property market.

💡We've got: 

  1. Rent-vesting: where you buy a property in a location you can afford, while renting in a location you want to live.
  2. Fragmented property purchase: where you buy a fraction of a physical property as an investment (but you can't live there)
  3. Rent-to-buy: where buyers can lease a property with the option to buy it at a later date.

💡Rent-to-buy schemes allow tenants to build up equity in the property as they pay rent. This means you get a foot in the door (literally) in a sizzling property market.

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