Real Estate News

Buying housing shares: The new risks and appeal

Published: 29 Jun 2017

High costs and competitive markets could understandably propel new potential homeowners to try some creative solutions for gaining property. The potential issues may come, however, if these tactics inadvertently lead to risk.

The Real Deal reported on a trend in London that may or may not be one way to circumvent the problems of finding an available, affordable home. The source specifically considered the "Share to Buy" model, in which future owners buy percentages of a property rather than the entire thing, splitting the costs. Southern Housing sales manager, Tariq Qureshi, explained the way a Share to Buy model has grown over the years.

"It was initially targeted at people in social housing, who fell in the gap of earning enough not enough to rent from local authorities but not enough to buy outright," Qureshi said, later adding that "As with homeownership in the open market, demand constantly remains high for shared ownership and supply does lag behind that."

Other changes in property trends could leave the average renter with a new series of variables to consider. A piece for The Boston Globe recently talked about the trend of short term rentals in the city, in which corporations rent out apartments to people for short stays. It's possible to see this as a similar reaction to the immense need for space in urban areas, as well as the popularity of sharing services like Airbnb.

The Globe suggested that the companies behind some of these arrangements don't necessarily need to be based in the cities themselves, since one of the businesses mentioned was based in Los Angeles. In addition, the presence of corporate apartments has added another wrinkle to Boston's already complicated relationship to housing, a case which could possibly repeat itself in other similar markets.