driven by a passion for better outcomes 

In 1604, Sir Edward Coke declared that your house was your castle and fortress.  While everyone wants their own castle, the cost of attaining it, given ever-rising prices, rents, and mortgage costs, is making the dream unobtainable for many.

 

Gen-Z looks to a different model that differs from ownership.  They look to subscriptions to meet their short-term demands for entertainment (Netflix) and transport (Uber) and are naturally averse to ownership.  Numerous articles have been written on the rise of subscription-based businesses meeting their needs, with recent pronouncements looking to a subscription-based housing model.

 

Intuitively, this makes sense, but it currently runs into the block of “how do you reconcile this desire to subscribe with those that want a sensible rate of return for providing access to a subscribed-for house? " Is there a way to finesse the desires of a coming generation with the economic needs of those with capital?

 

There is a way that not only provides subscription-based housing services but also returns the subscriptions when an occupier wants to move on.  This seems too good to be true, but it is possible.  It  requires the following:

 

• A subscribing occupier to take responsibility for the fabric of the accommodation whilst he is in occupation,

•  A belief in the democratisation of the equity markets, specifically deep equity indices,

• Banks or lenders prepared to lend on conservative asset cover ratios with interest always current but principal only repaid via refinancing, and;

•  Institutional investors comfortable with long-term (30-year) returns of over 10% per annum.

 

Meet these criteria, and perhaps the holy grail is within touching distance.  Welcome to HaaS