How Co-ownership Works

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Co-ownership is an excellent way to purchase and maintain a property for a fraction of the cost. 

 
But let me be clear on one thing,
Co-ownership does not mean you'll be living with your co-owner!
  
 
You may be asking, how is this all possible? 
 
Its called,

Tenants In Common

 

With the title structure Tenants In Common, owners each have an interest in the property, represented by shares which may be equal or not.

 
For example, one owner may have as much as 75% while the other owns the remaining 25%.
 
All owners retain control over their share of the property and reserve the right to transfer or sell their share to a third party, or even give it away in a will. This title structure together with our detailed industry-leading co-ownership agreement is your recipe for co-ownership success.
 
You may be asking, hasn't Tenants In Common been around for a long time? Yes, it definitely has. It was actually introduced in Australia in 1962 by Sir Robert Richard Torrens.
 
 
(image source: Adelaide.sa.gov)
 
 
You see the title structure is only just part of what makes a successful co-ownership relationship.
 
The other half is an iron tight co-ownership agreement.
 

The purpose of a Co-Ownership Agreement is to set out each parties legal rights and obligations. It also addresses any foreseeable issues and provides means of dealing with them.

 
We have designed a unique Co-ownership Agreement with our partners.
 
With over 40,000 successful co-ownership agreements to date!

 
 
 


Which Ownership Role Best Suits Your Needs?
 
 
 

 Option 1:  Buy To Occupy

 

When buying to occupy a co-ownership property, you'll be able to live in the property as your primary residence, known as the Owner Occupier. Your co-owner will hold the property as an investment, as the Owner Investor.

 
You have the choice to stay in this role for as long as you like, or until you wish to sell.
 
If you have a loan, mortgage repayments are paid on your share and a percentage of the market rent is then paid to your co-owner based on their ownership amount.
 

The amazing thing about this is that your total monthly costs are what you would pay in rent each month. 

 
 Own your home for the price of renting! 
 
 
 
 

Option 2:  Buy To Invest

 

If you're investing in a co-ownership property, you're holding the property for investment purposes only whilst your co-owner is occupying. You'll receive rent from your co-owner based on the percentage of ownership that you hold.

 
For example, if the property as a whole normally receives $500 per week and you owned 50%, you would receive $250 per week from your co-owner.
 

There may also be scenarios where both co-owners decide to invest in the property. In this case, both co-owners are in a mutual agreement that the property is for investment purposes only. The property will be rented by a third party and you will both share the properties rental income and expenses based on what percentage of ownership is held.

 
 
 
 
 
Can I sell my share of the property?
 
You are free to sell your share of the property at any time. However, the sale will be under the conditions of your co-ownership agreement. eg; Offering your co-owner the option to purchase your share before listing it on an open market.
 
 
Do you still have questions?
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