Sunday, August 9, 2015

POINT knows that in 10 years, home prices will be MUCH higher

POINT knows that in 10 years, home prices are likely to be even higher, significantly.  That's why they are so eager for you to give up a portion of your home ownership and gain from your home's price appreciation.

"Point is automatically paid its share of the property's value when you choose to sell."  This is a great deal for Point because they know you'll only sell if your property INCREASES in value.

"If you don't sell, you buy back the fraction you sold us after 10 years."  Point chose 10 years because they know that its overwhelmingly likely that the cost of homes will be significantly higher after 10 years.  Past history has shown that even if homes initially drop, after 10 years the gain is likely to have overtaken that initial drop and result in a significant net rise in value.

Even more dangerous is your home could appreciate so much in those 10 years that you can't afford to buy back the portion that you gave away to Point.   You might be forced to sell your house just so you can pay back Point.

"Point is perfect for homeowners who want to access their home equity wealth..." by reducing their home equity percentage ownership.

"...without the burden of more debt and more monthly payments." because they gave up a portion of their ownership.
"...without borrowing and incurring new monthly payments." Even worse than borrowing so you can continue to own, you give up a portion of ownership in your home.

"Point pays its homeowner a tax-deferred lump sum of up to $200,000." so instead of your getting a tax BENEFIT from your interest payments, you do the reverse and pay MORE tax.

"If the property is not sold, the homeowner can repurchase the fraction that Point owns after 10 years."  They mean the homeowner is FORCED to repurchase that fraction.  However, after 10 years, home will likely COST MUCH MORE, so you will pay MUCH MORE 10 years from now.

"...whether Point makes money is dependent on how much your property appreciates." which it likely will significantly after 10 years.

" ... limited to homeowners in specific California counties and communities." i.e. only California counties that APPRECIATE in value and cost, such as Silicon Valley!!