A few months ago, while browsing Facebook, I stumbled upon an ad for Longview. The person speaking in the ad looked strikingly familiar, sparking a curiosity that led me to delve deeper into the company and its founder, Evan Thornley. Evan’s name resonated with me from my teenage years, having read about him in Grant Butler’s book, “Where’s the Loot?”—a captivating read that left a lasting impression. Coincidentally, Grant and I are friends now, adding a delightful twist to this discovery.
Intrigued, I reached out to Evan and the team for an episode of the Sub11 Uncovered podcast. The conversation that ensued was a plethora of insights, tracing Evan’s impressive career and the founding of Longview. Evan Thornley, co-founder and CEO of Longview, has been a cornerstone in Australia’s tech and property sectors. From pioneering Looksmart, the first Australian tech company listed on NASDAQ, to establishing Goodstart, Australia’s largest social venture, Evan’s entrepreneurial journey is nothing short of captivating.
During our discussion, Evan shared the ethos behind Longview—a company with a vision as profound as its name suggests. The philosophy is simple yet impactful: property is a long-term game. While most industry players are fixated on short-term transactions, Longview focuses on the long-term capital growth, especially in the Australian residential property market known for its robust growth despite low rental yields.
Evan explained how Longview is addressing this gap by pioneering the concept of a housing fund industry in Australia. Unlike other countries with well-established housing fund industries (think Home Equity Investments in the US), Australia lacks a system that allows investors to gain exposure to the residential property market without directly owning the properties. Longview aims to change that by offering an investment vehicle that separates the financial flows of investment from physical ownership and occupancy.
This is done through its HomeFlex and Buying Boost products that provide homeowners with upfront money, releasing built up equity or boosting their deposit, in return for a share of future capital growth. The homeowner has no interest to pay and always remains in control of their home.
Unlike reverse mortgages or first mortgage loans, LongView and the homeowner share in the rewards and risks of owning a high quality property and any future capital growth.
This approach is pivotal, especially in a country where the private rental market is often dysfunctional, failing both renters and landlords. Longview aims to revolutionise this space by targeting properties with high capital growth potential, specifically robust older dwellings on well-located land—what they affectionately term “RODWELLS.”
One of the standout moments of our conversation was Evan’s mention of Longview’s ambitious growth plans. Currently invested in over 40 properties, Longview has set its sights on expanding to 200 properties. This strategic growth is not merely about scaling up; it’s about achieving a level of diversification and stability that allows for more predictable returns and a stronger portfolio. Evan explained that reaching 200 properties would enable Longview to have a “self-harvesting” portfolio, where properties are sold and reinvested, providing steady cash flows and enhanced investor returns.
Our conversation was filled with Evan’s passion for transforming the housing market. He envisions a future where Australia boasts a vibrant housing fund industry, similar to its successful superannuation system. Longview, now nine years into its journey, is at the forefront of this transformation. Evan’s humorous remark, “So hopefully we should be an overnight success by about year 15,” encapsulates the patience and dedication driving this mission.
As we wrapped up the podcast, it was evident that Evan Thornley and Longview are on a mission to reshape the Australian residential property market. Their innovative approach and long-term vision provide a refreshing alternative for investors eager to tap into this sector. I’m excited to see how Longview’s story unfolds and the impact it may have on the industry.
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