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

Kiwis will be able to buy a share in a house for as little as $100 with a new investment platform launched today that promises to break down the barriers to home ownership.

Housies will allow investors to buy shares in a house and receive returns from rental income or long-term capital growth.

Co-founder James Jordan says this will allow people to easily get access to a home if they invest enough.

"They have skin in the game, they've got their own money in the property. The properties are all going to be new homes and they're going to look after them and we're going to support them."

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Episode Transcript

Speaker 1 (00:00):
Now you've heard of shares these, but you probably haven't
heard of houses because this is just launched today. But
this is a new investment platform that allows you to
invest in the property market by buying a steak in
property for a very small amount, as little as one
hundred dollars. James Jordan is a House's co founder and
with us, Hello James, Hi, have it okay? If I
put my one hundred bucks into this? Am I buying

(00:20):
into a specific house or am I buying into a portfolio?

Speaker 2 (00:24):
You're buying shares in a specific house.

Speaker 1 (00:27):
You want to decide which one I want to invest in?

Speaker 2 (00:30):
You can. At the moment, We've got five houses for
sale on the property, so you can choose any one
of those five or a part of all five.

Speaker 1 (00:37):
And how much is the maximum I can put in?

Speaker 2 (00:40):
You can own a maximum of twenty five percent of
a home. But there is one person who's an investor
who can own more than twenty five percent of the home,
and that's the ones who will live in the property.

Speaker 1 (00:50):
Oh so, so does the person with the highest, the
biggest steak get like DIBs to live in it?

Speaker 2 (00:58):
Now, what happens is that every house will have a
shareholder who lives in the property, and that's someone who
will apply to become what we call a guardian because
they're going to be looking after the property on behalf
of the other shareholders and they have to own a
minimum of two percent of the shares, So the access
to a home is quite a low bar there as
far as compared to banks, for example. And then and

(01:19):
they pay say are you going.

Speaker 1 (01:20):
If I am buying into this house, how can I
be sure that they are going to maintain the house
to my standards?

Speaker 2 (01:27):
So what we've were monitoring that will be doing inspections.
They have skin in the game, they've got their own
money in the property. The properties are all going to
be new homes, and they're going to talk after them
and we're going to support them and making sure that happens.

Speaker 1 (01:39):
And are they going to pay market rent?

Speaker 2 (01:43):
Probably less. What we're finding is that they pay four percent.
They pay an occupation license fee, so they pay rent,
and that fees based on four percent of the shares
they don't own. So it is a bit of a
numbers game, but we're finding that that four percent or
the cost of that, even if they're owning at two percent,
the property is usually slightly less than what they were

(02:03):
paying rent today.

Speaker 1 (02:04):
Is that a good deal for me if I'm a shareholder?

Speaker 2 (02:07):
Well, I think so. You're going to get a dividend
on the four percent, and you are going to be
able to trade those shares on our secondary market, and
we're the first company in is zone to be approved
by the SMA to operate a secondary market, and you're
going to be able to trade those shares on your
foot and you will collect not only a dividend, but
you'll also be able any capital gains. You will obviously

(02:28):
keep that as well.

Speaker 1 (02:29):
Okay, And so the rent that I'm going to get
as my dividend, is that going to cover what I'm
expected to chip in for the maintenance and the rates
and stuff.

Speaker 2 (02:38):
You don't have to so we pre fund belong to
maintenance right at the very beginning. The four percent covers
rates and insurance. If there's any shortfall theres you know,
it's quite a bit of inflation with councilors these days.
The Guardian will support any shortfall.

Speaker 1 (02:52):
Interesting, James, thanks very much for talking us through at
James Jordan, co founder of Houses for More from Heather
Duplessy Allen Drive listen live use talk zeb from four
pm weekdays, or follow the podcast on iHeartRadio