.svg)
The home Sarah wants to purchase has a risk adjusted value of $450,000*.
She can afford to put down $50,000 as a down payment. Point puts in another $50,000 to increase her down payment to 20% of the sale price.
Four years later, Sarah decides to sell her home for $375,000.
Sarah’s home value has declined $75,000 below the risk adjusted value.
Sarah keeps 92% of the sale price, around $344,600.
Point gets 8% of the sale price, around $30,400.
This is calculated by adding the original investment of $50,000 minus the $19,600 that Point shares in the home's depreciation.
The home Sarah wants to purchase has a risk adjusted value of $450,000*.
She can afford to put down $50,000 as a down payment. Point puts in another $50,000 to increase her down payment to 20% of the sale price.
Four years of appreciation later, Sarah decides to sell her home for $573,800.
Sarah’s home value has appreciated $123,800 above the risk adjusted value.
Sarah keeps 86% of the sale price, around $491,500.
Point gets 14% of the sale price, around $82,300.
This is calculated by adding the original investment of $50,000 plus the $32,300 that Point shares in the home's appreciation
The home Sarah wants to purchase has a risk adjusted value of $450,000*.
She can afford to put down $50,000 as a down payment. Point puts in another $50,000 to increase her down payment to 20% of the sale price.
Four years of appreciation later, Sarah decides to sell her home for $626,500.
Sarah’s home value has appreciated $176,500 above the risk adjusted value.
Sarah keeps 85% of the sale, around $532,100.
Point gets 15% of the sale, around $94,400.
In this scenario, Sarah’s cost is capped with a time-based max amount due to the significant appreciation.
