Latest / Best of Business / James Jordan: Housies co-founder on the new investment platform designed to get people on the property ladder

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James Jordan: Housies co-founder on the new investment platform designed to get people on the property ladder · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk zed B.
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  Speaker 2: Now you've heard of shares these, but you probably haven't
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  Speaker 2: heard of houses because this is just launched today. But
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  Speaker 2: this is a new investment platform that allows you to
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  Speaker 2: invest in the property market by buying a steak in
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  Speaker 2: property for a very small amount, as little as one
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  Speaker 2: hundred dollars. James Jordan is a House's co founder and
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  Speaker 2: with us. Hello James, Hi have Okay? If I put
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  Speaker 2: my one hundred bucks into this, am I buying into
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  Speaker 2: a specific house or am I buying into a portfolio?
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  Speaker 3: You're buying shares in a specific house.
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  Speaker 2: That's you want to decide which one I want to
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  Speaker 2: invest in.
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  Speaker 3: You can. At the moment, we've got five houses for
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  Speaker 3: sale on the property, so you can choose any one
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  Speaker 3: of those five or a part of all five.
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  Speaker 2: And how much is the maximum I can put in?
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  Speaker 3: You can own a maximum of twenty five percent of
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  Speaker 3: the home. But there is one person who's an investor
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  Speaker 3: who can own more than twenty five percent of the home,
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  Speaker 3: and that's the ones who will live in the property.
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  Speaker 2: Oh, so that does does the person with the highest
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  Speaker 2: the biggest steak, get like DIBs to live in it.
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  Speaker 3: Now, what happens is that every house will have a
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  Speaker 3: shareholder who lives in the property, and that's someone who
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  Speaker 3: will apply to become what we call a guardian because
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  Speaker 3: they're going to be looking after the property on behalf
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  Speaker 3: of the other shareholders. And they have to own a
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  Speaker 3: minimum of two percent of the shares. So the access
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  Speaker 3: to a home is quite a low bar there as
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  Speaker 3: far as compared to banks for example. And then and
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  Speaker 3: they pay are you going.
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  Speaker 2: If I am buying into this house, how can I
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  Speaker 2: be sure that they are going to maintain the house
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  Speaker 2: to my standards?
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  Speaker 3: So what we've been monitoring that will be doing inspections.
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  Speaker 3: They have skin in the game, they've got their own
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  Speaker 3: money in the property. The properties are all going to
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  Speaker 3: be new homes and they're going to go after them
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  Speaker 3: and we're going to support them and making sure that happens.
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  Speaker 2: And are they going to pay market rent?
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  Speaker 3: Probably less. What we're finding is that they pay four percent.
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  Speaker 3: They pay an occupation license fee, so they pay rent,
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  Speaker 3: and that fees based on four person of the shares
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  Speaker 3: they don't own, So it is a bit of a
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  Speaker 3: numbers game. But we're finding that that four percent, or
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  Speaker 3: the cost of the evenness they are only at two
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  Speaker 3: percent of the property is usually slightly less than what
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  Speaker 3: they were paying rent today.
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  Speaker 2: Is that a good deal for me if I'm a shareholder?
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  Speaker 3: Well, I think so. You're going to get a dividend
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  Speaker 3: on the four percent, and you are going to be
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  Speaker 3: able to trade those shares on our secondary market. And
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  Speaker 3: we're the first company is on to be approved by
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  Speaker 3: the SMA to operate a secondary market, and you're going
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  Speaker 3: to be able to trade those shares on your foot
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  Speaker 3: and you will collect not only a dividend, but you'll
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  Speaker 3: also be any capital gains. You will obviously keep that
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  Speaker 3: as well.
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  Speaker 2: Okay, And so the rent that I'm going to get
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  Speaker 2: as my dividend, is that going to cover what I'm
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  Speaker 2: expected to chip in for the maintenance and the rates
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  Speaker 2: and stuff.
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  Speaker 3: You don't have to so we pre fund belong to
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  Speaker 3: maintenance right at the very beginning. The four percent covers
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  Speaker 3: rates and insurance if there's any shortfall theres you know,
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  Speaker 3: it's quite a bit of inflation with councils these days.
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  Speaker 3: The Guardian will support any awful.
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  Speaker 2: Interesting James, Thanks very much for talking us through at
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  Speaker 2: James Jordan, co founder of Houses.
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