The unprecedented demand for single-family homes during the pandemic caused a lightning-fast average appreciation of nearly 45% in just two years. While that growth rate is likely to slow, housing inventory is still a fraction of what’s needed, and we expect homes to continue to increase in value over time. Not only does waiting on the sidelines mean continuing to put life on hold—it also isn’t likely to be the wisest long term wealth strategy.
Divvy Homes customers don’t have to wait to build wealth. When you save for your down payment with Divvy, those savings can grow annually based on the appreciation of your home, jumpstarting your equity. And with pre-set purchase prices that don’t change no matter how much your home value increases, you have the potential to beat the market altogether.
If that doesn’t happen, and housing prices come down? You can walk away, no questions asked. Divvy customers have three years to watch the market while deciding whether to buy their homes. If the tide turns against them, they sacrifice only a relisting fee of 2% of their home’s initial price.
The New York Times recently reported that today’s higher interest rates will increase mortgage payments by hundreds of dollars a month, possibly adding 100,000 in costs over the lifetime of a typical loan. Worse still, most analysts believe interest rates will continue to rise in the immediate future.
But across the three years of a Divvy lease, the story could be very different. While their equity grows, today’s Divvy customers might avoid getting stuck with peak interest rates, instead timing their mortgages for more favorable terms.
Long term costs aren’t the only concern, though. High cost of living is affecting every American, which means every dollar matters right now. When nest eggs are more precious, Divvy’s initial payment of just 1-2% down—with no initial closing costs—means our customers hold onto more of their cash savings at move-in. And because our customers aren’t saddled with interest, insurance and taxes, their monthly payments are lower than with a traditional mortgage, too.
As Divvy CEO Adena Hefets recently put it on Fox Business, “the more expensive mortgages are, the greater the population of Americans who get locked out.” We believe there’s a better way, and that everyone deserves a chance to build their own future—from inside their dream home.
Brought you from Divvy Homes Blog