For many Americans, buying a first home is simply not economically feasible. So they end up paying a significant portion of their salary in rent, which, in fact, accounts for about 45% of Millennials’ income, according to recent research.
That’s the problem Up&Up seeks to address. Basically, the two-year-old company gives renters a way to get an ownership stake in their homes while they’re living there.
Thus, instead of paying two months rent for a security deposit, that money goes into the property as an initial investment and they keep on building up equity after that.
“Over time, we imagine people will think it was archaic that consumers had to lock up a large part of their net worth in a security deposit and put the majority of their income towards a wealth depreciating asset,” says Basil Siddiqui, a co-founder of the New York City-based company.