Savio introduces ‘SHARE’ program
A new path to homeownership has been created by innovative Realtor/developer Peter Savio. “We are calling it the SHARE program,” Savio said. “The name is actually an acronym for ‘Savio Home & Apartment Rental Equity,’ and it’s about building equity to buy a home through renting.”
“Renting can be a step toward ownership for those who are able to save money for a down payment,” Savio continued. “But, due to our high cost of living, this is difficult, if not impossible for many. Through my new SHARE program, I am basically going to give most of my equity back to the tenants in my rentals who help me earn equity by paying their rent. The way the program is structured, my mortgage will never go away … I will have to refinance the debt to pay the tenants the funds due once they are ready to buy. I will then re-rent the unit and start the process all over again. I am going to look at putting property I own in the program for 30 years.”
Savio provided the example of a tenant paying $1,400 per month in rent. “This covers mortgage, property tax, GET, maintenance and repairs … all costs of ownership. The tenant will have available after five years $5,493, after 10 years, $12,543, after 15 years, $21,591. If the city will waive property tax and the state the GET, the expenses would go down and these amounts could be added to the tenants’ funds, so in five years they would have $12,290, in 10 years $28,072 and in 15 years $48,320. This is my principal paid on my loan that I will give to them when they are ready to buy a property of their own. At the time of enrollment, the tenant’s income cannot exceed 140 percent of the median for Oahu and they may own no real estate.”
Savio noted that the program also serves as an “incubator” where the renter can learn about property ownership through a tenant association similar to a condo association. “They will review and approve budgets and house rules and generally be familiarized with what it takes to manage and maintain property. In addition to accumulating money for a down payment on a home of their own, they will also be obtaining the knowledge and experience needed to become a successful homeowner.
“The program was designed for the city and state housing projects to reverse the trend of warehousing people for years and instead equipping them with the funds and knowledge they will need to move out and move on. We are waiting for city- and state-owned projects, including the Chinatown Gateway and the Marin Tower, to be offered for sale, but meanwhile will start the program with a building we purchased in Makaha, the Makaha Clusters condominium, and another we are attempting to purchase in the Punahou area,” Savio said.
Savio Realty is currently accepting inquiries on the 10-unit Makaha Clusters, which includes four-bedroom, two-bath units and is located close to the beach.