DescriptionEstamos convencidos que el dilema de comprar o alquilar un piso, tiene una mejor solución: alquilar con opción a compra. Con Lucas transformas el pago de tu alquiler en una inversión y compras tu piso con tan solo el 5% de entrada.
SectorPayments & Collections
Today, young professionals in cities all over the world find saving money difficult due to high rents, and therefore can’t build enough cash to apply for a mortgage. In many cities, most millennials are spending over 40% of their income on rent alone. The average time it would take them to save enough money for a down payment on a flat is over 8 years, and that is if prices grow at inflation rates. This generation is considered the rent generation and it is believed that the vast majority will rent well over their 40s as they are bound to be stuck renting. This reality will provide a big dent in their financial prosperity.
The bottom line is that Millennials:
-Find saving very hard due to rents
-Can’t access a mortgage due to little savings
-Want to live in digitally served areas like city centers
-Demand flexible solutions
Additionally, these high rent environments continue to attract real estate capital who seek to institutionally invest in Buy to Rent schemes. The problem is that there is no efficient way of distributed investing in cities as it requires a lot of human capital and costs.
Lucas connects both sides of the equation to allow millennials to have access to homeownership and use their rent as an investment while providing real estate investors stable and smooth returns.
Product or service
Lucas is introducing a new and accessible way into homeownership to millennials through a Rent to Buy model. The purpose is to empower people in cities by providing them the ability to utilize part of their rent as an investment for the flat of their choice. The service has a fractional ownership component that requires customers to only invest 5% of the property value. Lucas comes up with the remaining 95% to buy the flat and lease it back to them with an exclusive option to buy it in three to five years at a pre-determined price. Part of their rent is allocated into “credits” for equity so they can build on top of their original stack. The offering addresses the flexible lifestyles millennials seek, mixing the benefits of renting and owning without obligating customers to execute the option if choose not to, returning their initial investment.
Using technology, Lucas makes the product accessible to the market and efficiently underwrites the transaction in a digital fashion. The product connects Buy to Rent real estate capital with Rent to Buy users and then acts as a bridge into full homeownership, working alongside with banks so they can access higher credit on a mortgage when they choose to buy.
Market and validation
· Who is your customer or target audience?
Millennials between 25 and 37 years old, urban citizens. People who like to live their life with flexibility, and whose lifestyle doesn´t adapt to traditional homeownership structures. They care about the future with a conservation approach. They are always in touch with technology, it is a fundamental part of their day-to-day. The rent takes a little more than 40% of their income and they don't have a lot of saving or investment capacity.
· How often do they have the problem mentioned above?
60% of Millennials in Spain say their only option is to rent. They would rather be homeowners, but they don´t have access to a mortgage (Source: Pisos.com / informe Millenials y Baby Boomers)
· How intense is the problem for them? How transformational is your solution to them?
Lack of accessibility of young people to housing is a global and urgent problem that affects very important issues such as emancipation, natality and other social aspects.
Our solution complete transforms the biggest expense that an urban citizen has, such as the rental payment and makes it an investment. Lucas will revolutionize homeownership mixing the benefits of renting and owning so they can live a more flexible and progressive life
· Who is the early adopter? Who are the followers?
Opinion leaders. They are concerned about the coolness factor and maintaining their reputations as being ahead of the curve on new ideas. They use technology to solve problems that affect them. They are renting and searching for new ways of homeownership.
· Is the buyer and user the same person or different ones?
The buyer and the user will be the same person.
Competition and diferentiation