Invest in homes in Argentina, England and more for as little as $100
- Home prices in the United States are still hovering near record highs, making real estate investing an expensive business.
- Condominium companies help people invest in real estate even if they are cash-strapped.
- Two startups that let Americans buy shares of properties overseas break down the process.
Owning a home in the United States is difficult and expensive enough.
Now, Americans are more interested in Europe and other relatively cheaper places abroad to buy homes and investment properties. The moves are not without challenges: Inflation and other costs eat away at home-buying budgets, and would-be investors often have to navigate foreign investment regulations.
But some startups are making it easier for Americans to reap the benefits of buying a second home overseas or owning a home overseas — without the high upfront costs.
Take Housie and Flyway, new startups embracing a growing trend in real estate investing: condominiums. The trend is for ordinary people to buy a share of a property instead of paying the entire bill. In return, investors get a share of the rental profits or, in some cases, time to view the property.
Can’t afford an entire Airbnb? Buy a share of one and reap profits as a co-owner.
Housie, a platform founded in July 2022 in Argentina, offers clients the opportunity to invest fractionally in studio apartments in attractive locations for short-term visitors in popular cities in South America, including Buenos Aires. , Argentina and Santiago, Chile.
According to Germàn Rimoldi, co-founder and CEO of Housie, the company certainly benefits from some countries with declining economies, such as Argentina, which, he added, is a common approach to real estate investment.
“I saw the opportunity to invest when prices were very low when Argentines started buying property in the United States in 2008,” Rimoldi told Insider. “That’s when I realized that this approach is easy for most investors to understand.”
Currently, for a minimum of $100, users can purchase shares of properties and receive quarterly dividends based on the property’s short-term market performance.
Data from Redfin shows that the average price per square foot in Argentina was $195 in August 2022, down 16.5% from a year earlier. According to Rimoldi, Housie is buying studio apartments in the heart of downtown Buenos Aires for around $200 a square foot, which he says is way undervalued.
Once purchased, the company lists the properties on Airbnb. According to AirDNA, a vacation rental data company, Buenos Aires has 12,105 active rentals. By comparison, Miami has 13,280. So far, Housie has six apartments in total — one in Chile, two in Argentina and three in Florida — and has more than 1,200 U.S. investors registered on the platform, according to Rimoldi. .
Halfway around the world, London and Athens-based start-up Flyway is taking a different approach to co-ownership.
Buy a share of a flat in London for as little as $150,000 and stay there for a few weeks a year
Fly away, which was founded in 2021 and raised $10 million in funding in August, targets a wealthier investor. Its clientele takes care of luxury pied-à-terre or second homes little frequented by owners.
Customers can buy up to six out of 12 shares of a turnkey house in London – and soon in other major cities – in exchange for at least one month to spend in the house during the year.
“Throughout my life, I have traveled very frequently to multiple cities and have always wanted a solution like this,” Nikos Drandakis, founder and CEO of Flyway, told Insider. “I wasted so much money on hotels.”
Currently, Flyway is offering four homes in London with the lowest price starting at £131,000 per share – or $149,121 – for a one-bedroom unit on Liverpool Street, while the highest is £519,000 per share. action for a two-bedroom apartment. The dollar is strong against the pound and the euro at the moment, which makes investing in European cities relatively more affordable and attractive to Americans.
After dividing the property between investors, Flyway assumes a role of property manager and charges a monthly fee. Still in the preliminary stage, Flyway has sold some shares but the houses have not yet been rented.
As for future plans, Drandakis first wants to see if his product works in London, but intends to focus on larger metros as he believes these homes will attract more interest over the course of the year. than seaside spots.
“With vacation homes, everyone wants to be there in July, and if you have eight or 10 owners, it’s very difficult to split the time,” Drandakis said. “But when you have homes in town, you don’t usually have that kind of seasonality. It’s all year round that the demand for those homes is.”