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A new app has launched to help co-investors clear the legal hurdles of buying property together.
Launched by proptech Co-operty, the new platform helps hopeful buyers come together with family or friends to set up their co-ownership agreement in a secure digital space and engage an expert conveyancer with experience in the field.
With partnership with lawlab, PropTrack, Effi, Life Sherpa and Simple KYC, the app can also provide referrals and guidance for sourcing a mortgage broker or financial adviser, having the property valued and authenticating family trusts or corporate entities.
Out of the process, buyers are able to set up a situation known as “tenants in common”, where all parties’ names are noted on the legal title alongside their individual percentage ownership, which can be sold separately or bequeathed as an inheritance.
With the so-called “bank of mum and dad” becoming an even greater presence in the lending community, Co-operty espouses the benefit of setting up co-ownership agreements between parents and children, which allows the elder generation to retain their assets while giving kids a helping hand.
“Co-ownership can be a better way for parents to help their children get into the property market, rather than gifting or lending money. That’s because with co-ownership, mum and dad will benefit from any property price appreciation and a potential rental return,” explained Lynda Coker, co-founder and CEO of Co-operty.
“Our initial focus is facilitating intra-family co-ownership that supports mum and dad’s retirement plans and treats siblings fairly. We are also excited to help housemates move from co-renting to co-owning. There are lots of possibilities, as the co-ownership model is very flexible and the Co-operty app makes it easy,” she said.
In her view, co-purchasing arrangements could be an integral piece of the puzzle in addressing the nation’s current housing challenges.
“We believe co-ownership could be the key to solving Australia’s housing affordability crisis because it significantly reduces the cost to each party,” Coker said.
“By buying a home together as co-owners, people can step onto that first rung of the property ladder faster and more cost effectively. From there, they can start to build up their property equity,” she added.
According to Liz Rochaix, Co-operty co-founder and company director, the platform will also serve as an opportunity to educate the professional community, with prospects of widening the practice of co-ownership through greater industry awareness.
“The Co-operty team is really looking forward to helping professional advisors – like accountants, lawyers, mortgage brokers and financial planners – understand and unlock the co-ownership opportunity for their clients,” said Rochaix.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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