HomeGrif vs. Hometap — European vs. American Model

In recent years, a new way to access money from your own property has emerged in the USA — the Home Equity Investment (HEI). The best-known provider is Boston-based Hometap. This model does not exist in Europe. Instead, the centuries-old viager principle applies here — property buyback with lifetime residency. In the Czech Republic, HomeGrif offers this approach. How do these two models differ and why does it matter?

What Is Hometap

Hometap was founded in 2017 in Boston and offers a so-called Home Equity Investment (HEI). The principle is simple:

• Hometap pays you part of your property's value (typically 15-25%)
• In return, it receives a share of the future appreciation of your property
• You pay no monthly instalments or interest
• Within 10 years you must settle — sell the property, refinance, or buy back Hometap's share

At first glance, it sounds straightforward. No payments, no interest. But the catch lies precisely in that ten-year limit and the share of appreciation.

Why Hometap Doesn't Work in Europe

Hometap and similar HEI companies operate exclusively in the USA. There is no environment for this model in Europe, for several reasons:

Legal system. American property law operates on different principles than European law. In the USA, it's common to trade property through investment instruments. In Europe — and especially in the Czech Republic — property ownership is protected differently. The cadastre (land registry), real burdens (vecna bremena), and the Civil Code create a robust framework that is incompatible with the American HEI model.

Absence of a regulatory framework. The USA has a developed ecosystem for alternative property products. In the EU, no harmonised regulation for home equity investments exists. Each country has its own rules and none of them account for the HEI model.

Cultural differences. In the Czech Republic, over 78% of households own their property — one of the highest rates in Europe. The relationship to home ownership is deeper and more conservative here. The idea that someone "invests" in your property and shares in its appreciation is unacceptable to most Czechs.

The European Alternative — Viager and Lifetime Residency

While the American HEI model has existed for less than a decade, the European viager has more than 800 years of history. The viager principle originated in France in the 13th century and remains one of the most widespread ways for seniors to monetise their property while continuing to live in it.

HomeGrif brings this proven principle into the Czech legal environment:

• The client sells the property's value (all or part of it)
• In return receives a lump-sum payout, lifetime income, or a combination
• They continue living in the property for life — with no time limit whatsoever
• The lifetime residency right is protected by a real burden (vecne bremeno) recorded in the Czech cadastre

Legal Basis in Czech Law

A real burden (easement/servitude) is governed by Section 1257 et seq. of the Czech Civil Code (Act No. 89/2012 Coll.). It is the strongest form of legal protection that Czech law offers for the right of residence:

• It is recorded in the cadastre — publicly verifiable
• It survives a change of owner — even if the new owner sells the property, the lifetime residency right remains
• It cannot be unilaterally terminated — unlike a purely contractual arrangement

Parameter Comparison

The "Ten-Year Time Bomb" Problem

The biggest risk of the Hometap model is hidden within its apparent simplicity. No payments, no interest — sounds great. But what happens in 10 years?

Consider a typical scenario:

Mrs Novakova, age 70, owns a flat in Prague worth CZK 5 million (~EUR 200,000). If she lived in the USA and used Hometap, she would receive approximately CZK 1 million (20% of value). No payments, no stress. But in 10 years — at age 80 — she must settle:

1. Sell the flat — finding new housing at 80 is difficult and stressful
2. Refinance — which bank would give a mortgage to an 80-year-old client? Practically none
3. Buy back Hometap's share — if the flat has meanwhile appreciated to CZK 6.5 million, Hometap's share could be CZK 1.5-2 million. Where would an 80-year-old retiree find such a sum?

All three options are extremely problematic for a senior of advanced age. And if none of them is fulfilled, Hometap can initiate a forced sale of the property.

How HomeGrif Solves This

With HomeGrif, no such scenario exists:

• No time limit — Mrs Novakova lives in the flat for as long as she wants
• Real burden in the cadastre — nobody can evict her
• No settlement required — the transaction is completed at contract signing
• Lifetime income — if she chooses monthly payouts, she receives them regardless of how long she lives

Share of Appreciation vs. Fixed Terms

Another significant difference is how the two models handle future changes in property prices.

Hometap shares both risk and reward. If the property appreciates significantly, the client must pay Hometap a higher amount. If it depreciates, Hometap bears part of the loss. That sounds fair — but in practice it means uncertainty. The client doesn't know how much they'll have to pay in 10 years.

HomeGrif offers fixed terms. The buyback price is set at contract signing. Future changes in property prices have no effect on the client — neither positive nor negative. The client knows exactly what they'll receive, with no future obligations.

For seniors who need predictability and peace of mind, the fixed model is clearly preferable.

Who Is Each Model Best For

Hometap may be interesting for:

• Younger property owners in the USA (30-50) who plan to sell within 5-10 years
• Entrepreneurs who need short-term capital and expect future income
• People for whom a 10-year limit is not a problem

HomeGrif is better suited for:

• Seniors 50+ who want to stay living at home for life
• Owners who need regular monthly income to supplement their pension
• Anyone who prefers fixed terms without future obligations
• Families who want to protect their heirs (Earlypass)
• Clients for whom the legal certainty of a real burden in the cadastre matters

Key Takeaways

The American and European approaches to unlocking property value are built on fundamentally different philosophies:

• American HEI model (Hometap) is an investment product with a time limit — it functions as a partnership between investor and owner, but with a clear exit deadline
• European viager model (HomeGrif) is a buyback with lifetime residency — it functions as a permanent solution without debt, without time pressure, and with the strongest legal protection

For Czech seniors who want to monetise their property and continue living in it, the European model is not only more accessible (Hometap does not operate in the Czech Republic), but above all safer. A real burden in the cadastre, no time limit, and predictable terms — these are values the American model cannot offer.

Indicative Calculation

Do you own a property in the Czech Republic and want to find out how much you could receive? Try the calculator — anonymous and no obligation.

Further reading:

• FINEMO Property Income — Independent Comparison
• NaVykup Sale-and-Leaseback — Independent Comparison
• All Options for Property-Based Retirement Income 2026
• HomeGrif vs. Reverse Mortgage: Which Is Better
• Compare All Alternatives