Virgil could well redefine the relationship to real estate for a whole generation . Since 2020, the startup with a revolutionary model has been helping young workers to buy their main residence by co-investing up to 100 euros by their side. Explanations.
What prompted Saskia Fiszel and Keyvan Nilforoushan, former executives of onefinestay, to enter the real estate market? It is first of all an implacable observation: in Paris, the prices per square meter are too high to allow those who live and work there to become owners without making a sum of untenable compromises. When the company they have grown up to 700 employees is acquired by Accor for 150 million euros, they decide to take action. No question, however, of launching yet another banking product. They invest real estate capital with young people. And that changes everything.
A generation subjected to the rental trap
“Real estate prices in big cities have increased so much that it has become a sum of unbearable compromises for young workers who want become owner ”, deplores Saskia Fiszel, co-founder of Virgil. At issue: the stone ceiling.
What is the stone ceiling?
They are graduates, have stable jobs and see their thirties approaching. However, whether they are in a couple or single, it is impossible for them to become owners of their home, unless they buy too small or on the outskirts … Especially if they do not have a family heritage. This is the situation in which many young active Parisians find themselves. Result: they are slaves to their rents. “Each month, is 34% of their income which evaporates with their lessor ”, explains Saskia Fiszel. Becoming an owner, on the contrary, could allow them to start building their heritage. Young people understood this well: 96% of tenants of 25 at 34 years are it in spite of themselves.
It is that in the big cities, the prices of the real estate rise more quickly as income. The banks, for their part, are tightening the conditions for access to loans. The required intake is more important than ever. This situation keeps a whole generation away from financial independence.
Getting out of the rental trap without compromise
To stop wasting their money on rent, young workers are forced to give up the criteria that matter to them: put a cross on the child’s room or leave their neighborhood. This is precisely what Virgil avoids. Abel and Sophie have made the observation: this Parisian couple called Virgil to the rescue to buy the loft of their dreams, a few steps from the Gallieni metro, despite a limited contribution. All this, on line three and with enough space to accommodate their friends and family who live outside of Paris, exactly as they hoped. To do this, Virgil bought a share of their apartment by their side.
Support for 360 degrees
A financial boost, but not only: Virgil offers a accompaniment to 240 degrees for a serene access to the property. The journey of a first-time buyer is strewn with pitfalls, from the definition of the project to obtaining bank financing. In this ordeal, Virgil is a precious ally who allowed Abel and Sophie’s case to stand out among salespeople: “ We had downloaded a guide to what was needed to verify. We also had cover letters, Virgil’s certificate attesting to our borrowing capacity. We were really used to it . »
This is also why Virgil very carefully selects the projects he wishes to finance: no question of encouraging bad business. To remain consistent with its primary mission, Virgil also refuses investment projects, and focuses on those who wish to acquire their main residence. For now, the startup operates only in Paris and its suburbs, but will quickly expand to other large cities.
Virgil, how does it work?
To benefit from the help of Virgil , do young owners have to give up being the sole masters of their home? Do they have to deal with the demands of a second owner? Pay installments, or worse, rent? No, none of that: Virgil is sleeping co-owner.
Sleeping co-owner, késako
The capital investment model is well known in the entrepreneurial world. Thanks to Virgil, it spreads to urban residential real estate. More specifically, at the time of purchase, Virgil co-invests up to 96 12 euros within the limit of 20% of the price of the property. And then ? And then nothing, until the moment of resale: Virgil is a sleeping co-owner, that is to say he does not claim anything from the owners, who are indeed at home. When they choose to put their property back on the market, Virgil is paid up to his share. If, after ten years, the owners have not resold their apartment, they buy back Virgil’s share at market price. The interests of Virgil and the buyer are aligned.
And on the investor side?
Where does Virgil find the money for this ambitious program? To date, the company has already raised 5 million euros which will be invested with the buyers that Virgil supports.
What explains the enthusiasm of investors for this new funding model? First, Virgil offers them the unprecedented opportunity to invest in urban residential real estate without having to manage tenants. The prestigious investors who support Virgil are won over by the meaningful model offered by the startup: “ We invest in companies that are changing the world with strong societal value. Virgil’s model resolutely innovates by creating a virtuous circle that generates value both for young people and for investors ”, explains Nicolas Rousset, president of Evolem.
Perhaps that is the feat Virgil has achieved: meeting two needs at once, by positioning himself between investors and young people assets that they would like to help.
A win-win and revolutionary logic, which could well allow an entire generation to also achieve its economic emancipation … And perhaps, give you a helping hand too?
You may be eligible to benefit from Virgil’s support. To find out, present your project in two minutes on their site . Who knows, maybe you will definitely turn the page of rental…