New Ways To Turn Your Home Into an ATM
September 7, 2008
Another ATM Option for a Home ?
Kenneth Harney in his article: “Firms emerge to tap future property appreciation” in the Saturday September 6th business section of the Arizona Daily Star talked about 3 new businesses which have formed to tap future property appreciation. They will loan you money for a share of future profits when the home values rise.
What do you think of this idea?
Is this another way for homeowners to tap their home equity like an ATM?
Is it leading to the next wave of foreclosures?
Is it a continued sign of American home owners not willing or able to live within their means?
Here is a direct quote from the article.
“For example, San Francisco-based REX offers $70,000 cash to the owner of a $900,000 house who is willing to share 30 percent of future appreciation. That rises to $117,000 in exchange for a 50 percent share. Existing equity in the home — and future value growth attributable to capital improvements — are not affected by the deal. There are no interest rates or monthly payments, and the timing of the end of the agreement usually is up to the property owner.”
