Tackle housing affordability and the rental crisis in Australia, with James Bowe from OwnHome
Aug 31, 2022
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James Bowe, Aussie startup helping millions of Aussies get past the initial hurdle of saving for a home deposit, discusses tackling housing affordability and the rental crisis in Australia. OwnHome offers a rent-to-own model, reducing upfront costs and partnering with Commonwealth Bank for a smooth transition to full-home ownership. James also reflects on his idyllic upbringing, building businesses, and the importance of team values.
OwnHome offers a rent-to-own model that helps Australians achieve home ownership by allowing them to move into their desired property immediately while building their security deposit through fortnightly payments.
Housing affordability and access to home ownership is a nationwide issue in Australia, affecting not only low-income individuals but also high-income earners who lack access to intergenerational wealth, and OwnHome aims to provide a financially realistic path to home ownership for this group.
Deep dives
Own Home: Solving the Housing Access Problem
Own Home, an Aussie startup, is tackling the housing access problem in Australia. With skyrocketing house prices and the need for a large deposit, many Australians struggle to achieve home ownership. Own Home offers a rent-to-own model that allows aspiring homeowners to move into their desired property immediately, while building their security deposit through fortnightly payments. They assist customers in finding suitable homes, handle property inspections, negotiate fair prices, and provide a managed in-home experience. The model aims to provide a financially realistic path to home ownership for those who lack intergenerational wealth but can afford mortgage repayments.
Addressing Housing Affordability Nationwide
Housing affordability and access to home ownership is not just a problem for low-income individuals, but a nationwide issue in Australia. The rising cost of deposits and stagnant wage growth result in longer periods spent renting, leading to wealth inequality between renters and homeowners. Own Home targets a group of creditworthy, high-income earners who lack access to intergenerational wealth. Their model lowers the upfront cost of acquiring a home, allowing customers to make monthly mortgage payments that are often equivalent to rental payments. They support recent immigrants and diverse customers seeking a path to home ownership.
Building a Values-Driven Team and Business
Own Home has established a strong team culture with core values of high humility, owner mentality, constant growth, sweating the inputs, and blowing minds. They emphasize being open to new ideas, taking end-to-end ownership, constantly learning, paying attention to details, and going above and beyond to exceed customer expectations. The team reflects on their journey, recognizing the importance of a strong partnership, sustaining the mission, and enjoying each chapter of building a high growth business. Choosing supportive funding partners has also been critical to their success, as they work towards their vision of helping more aspiring homeowners than any other business in Australia.
Lessons Learned and Looking Ahead
Own Home has experienced tremendous growth since their inception, highlighting the demand for their rent-to-own model. They have learned the importance of applying brakes to maintain long-term sustainability while urgently helping aspiring homeowners. Reflections include the need for founders to embrace feedback, the significance of energy management, and the value of cherishing every chapter of the business. They also understand the power of funding partners and their role in achieving the vision of supporting customers in transitioning from rent-to-own to bank mortgages. The ultimate delight for Own Home will be witnessing customers become homeowners and achieving their long-term goal of home ownership.
Homeownership and wealth inequality remain one of the greatest threats to our society. OwnHome is an Aussie startup solving housing access by helping millions of Aussies get past the initial hurdle of saving for a home deposit. Earlier this year, alongside the Commonwealth Bank, Dan Krasnostein and Casey Flint from Square Peg led the $31m Series A investment in OwnHome, to get more Australians out of the rental trap, and into their own home.
Today’s Podcast episode tackles this enormous problem, explains the rent-to-own model and introduces you to one of OwnHome’s co-founders, James Bowe.
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