There are loads of things stacked up against millennials hoping to buy their first home: student loan debt, a high cost of living, all that avocado toast. That's where startup Loftium comes into play.
Loftium, which launched this month, makes home ownership — something many millennials no longer even dream of as an option — more accessible. They will contribute up to $50,000 to your home's down payment if you rent a room in it on Airbnb for one to three years, depending on how much down payment assistance you need, according to The New York Times.
Exact numbers are determined on a case-by-case basis, and this service is intended for first-time homebuyers with their eyes on a place costing $600,000 or less. The catch is that Loftium will pocket some of the income obtained from the Airbnb rental, thus earning back the money they gifted you for the down payment, plus more.
Interested in hearing more about the nitty-gritty? Read on.
Where do you need to live?
The service is currently only available in Seattle, where the startup owners are based, but there are hopes of expanding to additional cities.
What is Loftium's relationship with Airbnb?
They're not officially affiliated with Airbnb. It's free to get a down payment contribution quote, and if you decide to move forward with Loftium, they will even provide you with bedding, towels, and bathroom essentials for your Airbnb when you move in.
What if you need a break from houseguests?
If friends or family come to town, or you simply want your home to yourself for a while, you can take up to eight freebie days a year to remove your room from Airbnb.
What if you're having a hard time finding houseguests?
Loftium assumes the average occupancy rate of your Airbnb will be 65 percent for the entire year. If your home's Airbnb income is less than expected, Loftium takes full responsibility.
How far will you go to become a homeowner? To some, sharing their home with strangers for a couple of years is a small price to pay for a long-term benefit: never throwing money away on rent again.
Carolin Lehmann is an Associate Editor at Hunker. She's a graduate of the Missouri School of Journalism and has previously written for HuffPost, Seventeen magazine, and a variety of local news outlets. As a studio apartment dweller, she's always on the lookout for new ways to decorate a rental on a budget.