What is co-ownership?
Co-ownership is when an asset, such as a home, is jointly owned by two or more parties. In a co-ownership arrangement, all owners are listed on the asset’s title, signifying that each holds a specific percentage share of ownership. Opting for co-ownership means entering into a legal and financial partnership with the other buyers, as well as an agreement about property access.
The practice of co-ownership has traditionally taken the form of, a group of friends or family members coming together to buy a home, or children who jointly inherit a house from their parents or grandparents.
While co-ownership isn’t a new concept (Tenants in Common has been around for a long-time as an ownership structure), it has become a more viable path to home ownership. As real estate prices continue to rise and loan serviceability gets harder, it can make more financial sense to combine finances with other buyers and share the costs of buying and owning a home — especially for those who are priced out of buying a home in the current market.
How Co-operty can help
We at Co-operty make the pathway to property ownership easier and more affordable, while also unlocking property supply in areas where people want to live (close to family and life style), rather than where the government can open new supply.
Co-operty helps parents reduce financial strain and avoid sacrificing their retirement funds to help their children buy a home. Co-operty assists the children to become more accountable and helps them build their credit file and profile a lot earlier (an important factor for lenders in the home loan assessment process).
We can also help unlock equity for home owners who require access to capital while optimising their capital gains tax (CGT) obligations whilst retaining access to the asset’s capital growth and yield income.