REALSET

Rental + Equity Ownership

This website proposes a new model as a potential solution to the evolving Canadian housing crisis.

History of housing models...1950s Ownership was supported with the adoption of the long term mortgage. Where secured loans are amortized over 20-30 years1960s Condominium act was created to transform rental buildings into individually owned units with shared amenities controlled by a board1970s Co-Op model was created for the shared ownership of a building between a group of residents1980s Reverse mortgages are introduced to convert a portion of home equity into cash while retaining ownership2020s Co-ownership gains in popularity as financial institutions facilitate joint mortgages for multiple owners

Proposed...2020s Realset is introduced to combine renting and direct investment into the REIT that owns and operates the building you live in.

Why Realset is a good idea

Tenant perspective

  • Forced savings over time to build equity and invest in real-estate

  • Keeps all the benefits of renting: lower initial cost, flexibility, low maintenance

  • Better sense of community where they live, with a feeling of ownership

Landlord perpective

  • Tenants are investors and care about the building and their units

  • Lower maintenance cost

  • Lower vacancy rate

Developer perspective

  • Continuous source of investment that can be applied to new projects

  • Takes advantage of rental buildings government incentives

  • Deliver more affordable qualifying units

Society perspective

  • A less expensive alternative housing option

  • Forced savings akin to ownership

  • Alternative to ownership without the debt financing

Spreadsheet examples

Realset VS Ownership

How does Realset compare to home ownership over a 20 year period?Download your copy of the google sheet to adjust numbers and assumptions.

Realset = Saving Model

How does Realset help first time buyers build equity in the REIT while fostering a sense of ownership.Download your copy of the google sheet to adjust numbers and assumptions.

FAQ

What is a REIT? A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs pay dividends to investors.Is this like rent-to-own? No, a traditional rent-to-own model is a specific agreement that allows tenants to rent a property with the option to buy it later. A portion of the rent may go toward the eventual purchase.How does Realset compare to a Co-op? The fundamental difference is ownership. In Realset, the tenant owns shares in a REIT that owns the property. In a co-op, members collectively own and govern the property.Has this model been done before? Yes, there are private companies that offer similar programs, however these have not been widely adopted.What happens when I want to move or buy a house? Your shares in the REIT are not directly attached to your tenancy. If you move you can sell or keep your shares.What's in a name? In life, you'll develop skillsets, build assets, work on mindset - This is your REALSET, where you combine your real estate investment with the convenience of renting.

How can I get involved

This model is not new, private companies and REITs offer similar programs. However it would work better as a supported and published housing wireframe. Sign the petition to show your interest.Restrictions in Canada limit investments in private REITs. You must be an accredited investor to quality. Either this rule needs to change or a new definition needs to be created that specifically relates to rent + equity ownership.Much like pre-approved house design, this needs to be a pre-approved model that can be shared, replicated and adopted by developer and property managers.How can this idea be made better? Leave a comment below!

About me

My name is Philippe Beauparlant Linkedin

I've spent my career helping homeowners find solutions to improve their homes, designing over $20 millions in renovation projects.Now, instead of continuing to develop award winning homes one at a time, I'm focused on solving a replicable housing model that scales and eliminates downsides.Launching a Realset development requires both capital and residents to set the flywheel in motion. My aim is to unite individuals who share similar values and explore the possibility of advocating for government policies that streamline this housing approach.Interested? Join my newsletter