Have you ever considered co-ownership in property? This is quite common in families and between people in a relationship. New technology is enabling this to now take place online, described as a ‘tinder for real estate ’ where potential home buyers can find other people to buy or invest with. Whether you are interested in doing something this extreme or exploring this option in a more typical fashion, co-ownership can be a great way to get into the property market for the first time.
What is co-ownership in property?
Put simply, property co-ownership is when two or more people share the ownership of a property. This means you pool your money with others for a home deposit and combine your borrowing power to take out a loan with multiple people.
Co-ownership can also take many forms, including:
- Young singles or flatmates looking to switch from renting to co-owning
- A couple buying their first house splitting the costs and title with parents, who are investing in the property to help their child get on the property ladder (without using their own house as collateral)
- Individuals looking to invest in their first property but not quite meeting the requirements alone; or
- working professionals looking to split the cost of sharing a holiday home
Considerations for co-ownership
There are many benefits to property co-ownership that come from the split of costs required for purchasing and running a home. This has the potential to enable an individual to enter the property market sooner, and with more people contributing to the costs of the mortgage, this can be paid off sooner. There are many considerations you should have around this type of arrangement but in particular, finding the right ownership partner (or partners), and what might occur if a partner’s ownership goals change or the relationship turns sour are some which should be front of mind. Clearly defining and documenting the roles, expectations and financial contributions of each of the co-ownership parties is a key platform to co-ownership success. As a prospective buyer, you need to understand the borrowing, legal structuring, taxation and insurance implications of buying a property.
Co-ownership is now even easier
Kohab.com is the first digital platform and marketplace that connects family, friends and like-minded people to local real estate opportunities for co-living, co-investment and co-lifestyle purposes. Real estate has so much area for growth with the application of technology, and the online world has opened up the idea of co-ownership and made it more accessible and mainstream than it ever has been before.