Should I join Adjoin homes?
What is Adjoin homes?
Adjoin homes is one of a growing number of proptech (Property Technology) companies trying to make it easier for aspiring homeowners and first-time buyers to get onto the housing ladder.
Adjoin Homes offers a rent to buy model. This means that rather than just paying rent each month if the value of the home increases whilst you are renting it from Adjoin Homes you will get to share in the increase in the value of the home. This allows you the opportunity to build up housing equity whilst you are renting, your rental payments help you to own or buy the property.
How does Adjoin homes work?
Once you have joined or signed up to Adjoin Homes , there are a few simple steps to take to get you living in the home you want to buy
Adjoin Homes Step 1 Budgets
Agree on your home budget. Adjoin will help you work out how much you can afford to pay each month to buy your home
Adjoin Homes Step 2 Find a home
Find the home you want to live in. You can select any property that is currently for sale. Adjoin Homes will vet the property and if it fits their eligibility criteria they will act as your buying agent. This means that Adjoin Homes will purchase the property you want to live in and then rent it to you.
You can find a home on a property portal such as Boomin or Rightmove, or on individual estate agents' websites. We would suggest that you view a home at least twice, at different times of the day before making an offer.
We would also suggest that you find out about which homes Adjoin Homes typically invests in, it would be a great shame to find a home you really like, and fall in love with it only to find that it does not meet Adjoin's eligibility criteria.
Adjoin Homes Step 3 Move-in
Once Adjoin Homes has arranged the purchase of the property you will get to move in and live in the property you hope to buy before you buy it.
Adjoin Homes Step 4 Decide to buy or move out
When you are renting from Adjoin you can choose to buy or leave the home when the timing is right for you. Either way, if the value of the home has increased you will get to share in that upside, which means that by renting from Adjoin Homes your rent helps you to buy a home.
Adjoin Homes Step 5 Buy the property
You choose when you buy the home from Adjoin Homes. You can purchase the home for the market price at the time you want to buy it
One of the advantages of Adjoin is that as you already live in the home the buying process should be quicker, there are no counter offers, and if you want to purchase the home you will not be competing against other buyers. All you need to do is to arrange the finance to buy your home.
How much rent do I pay Adjoin Homes?
The rent will be calculated based on the purchase price and the rental costs of similar properties in the same area. However, a unique feature of Adjoin's rent to own model is that your monthly rental payments can be fixed or frozen for up to twelve years. This means that the amount of rent you pay Adjoin Homes will not rise for up to 12 years.
How does Adjoin Home's rent to own model work?
Adjoin Homes allows you to share in the upside of rising house prices. If the value of the home increases whilst you are renting it, you will get to share in that upside.
The amount of money you will get as part of Adjoin Home's rent to own model will depend on how much house prices have risen, how much rent you have paid and how big your booster payment was. Adjoin will make all of this clear in the contract that you agree with them.
Who owns the house I rent through Adjoin Homes?
A group of property investors will buy the home and own it until you choose to buy it from them.
Who are these Adjoin Homes investors?
Adjoin Homes is working with a network of high net worth individuals, wealth managers and institutional investors such as insurance companies and pension funds who provide the funds to buy the home you want to live in.
What is Adjoin Homes's role?
Adjoin Homes acts as the intermediary between the homebuyer and the investor
Who is Adjoin Homes for?
Adjoin Homes has been designed for aspiring homebuyers and residential property investors
One of Adjoin Home's aims is to make housing wealth accessible to all, to allow you to start to build housing wealth without the need for a large deposit or the need to take on a lot of debt (a mortgage).
Adjoin's rent to own model allows you to select a home you would like to buy and live in it without the need to take on a large mortgage or secure a significant deposit, a kind of try before you buy, but with the upside of sharing in the potential increase in value of the property whilst you are renting it.
Adjoin Homes provides residential property investors with an alternative way to gain exposure to the housing market, through a form of fractional ownership rather than a home being owned outright by one party, Adjoin allows a group of investors to become shareholders in a company which owns the property allowing residential property investors to spread their investment across a number of homes and diversify their risks across a property portfolio.
Is Adjoin Homes right for me?
There is no 'one-size' fits all solution to buying your first home. Everyone's financial situation is different. It is also not possible to see all of the details of Adjoin Home's model from their website.
To see all the details you will need to sign up for more information on their website. Once you have all the information you need, we would recommend that you seek independent financial advice from an expert. They will be able to tell you which method of home purchase is right for you given your unique individual circumstances.