I see a few startups that are doing rent-to-own or get down payment help for equity in your home.
Some people will scoff at sharing upside in your home, but IMO it makes more sense than this.
Some people will scoff at sharing upside in your home, but IMO it makes more sense than this.
This is because these schemes are usually limited in availability in such a way that you can't rely on them being there again when you decide to move up - so you need to be sure you can borrow a mortgage of the size of the amount of shared appreciation you are paying back to be able to move up (otherwise you'll get "trapped" - you can only afford to move to a cheaper house or stay where you are).
If you don't think your income will rise that quickly, or you think house prices will rise even faster, you'd be better off buying a place you can afford without shared appreciation and taking the biggest traditional mortgage you can get.
If you think prices are going to fall but want/need to buy now anyway then they are a fantastic deal.