Unmortgage Partners with Allianz Global Investors
London-based Unmortgage , a company that offers a different approach for buying a home, has partnered with Allianz Global Investors (AllianzGI), part of the Allianz Group, to help buy one’s new home.
Now, if a customer purchases 5% of a home, AllianzGI would manage the money that buys the other 95%. “AllianzGI has a great track record of helping open up new markets for its institutional clients, giving them access to new types of cash-flow. It plans to do so again by partnering with Unmortgage. In return for paying up to 95% of the home, your monthly rent gives them long-term, secured and stable income streams.” Unmortgage charges AllianzGI’s institutional clients a fee for helping them invest in the residential property market.
Let’s back up. Founded in 2016 and expected to go live in 2019, Unmortgage offers home buyers a co-ownership model which eliminates the need to take out a mortgage. Here’s how it works: an individual can become a part owner of a home while living in it and paying rent with as little as a 5% deposit. The remainder 95% is owned by Unmortgage, which buys the home together with the individual. While paying rent, the individual can increase his/her homeownership shares, and as ownership shares increases, the rent decreases. The company has raised a total of ~$13m since its inception.