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A new proptech claims that joint ownership has the power to help Australians reach their property dreams sooner.
Co-operty, a Sydney proptech start-up founded by Lynda Coker and Liz Rochaix, has set itself the ambitious goal of making home ownership accessible for all Australians.
The two experienced finance industry leaders took inspiration from the well-established tradition of co-tenancy, where multiple tenants put their names on the lease.
“With Australia in the grip of a housing crisis, we believe co-ownership is a solution to the immense challenges faced by first home buyers in getting onto the property ladder,” Ms Coker stated.
Unlike informal family lending, co-ownership models require all parties to put their name on the legal title, along with their percentage of ownership.
“We want to help the bank of mum and dad operate in a better way that does not require them to put the family home at risk or raid their retirement savings,” explained Ms Coker.
Not only does co-ownership give first home buyers a much-needed boost onto the property ladder, it also provides other contributors with an asset that they can resell individually or leave as an inheritance.
Ms Coker said: “Co-ownership is a great option for extended families and can support different living arrangements such as upstairs/downstairs, duplexes and granny flats.”
When it comes to joint ownership, the Co-operty founders warn that it is essential to ensure that personal relationships don’t get in the way of sound financial decisions.
Ms Rochaix advised: “To make everyone’s legal and financial rights clear, co-owners should draw up a contractual co-ownership agreement so everyone understands how the property will be occupied and managed, and what the exit plan is.”
She explained that their online platform specifically aims to streamline these arrangements by making digital documents and broking services simpler for all parties to access.
Co-operty will reportedly go live in beta testing early in the new year, and will initially focus primarily on intra-family co-ownership, and young groups of established flatmates who wish to transition from co-renting to co-owning.
Home ownership affordability has long been debated, with many first home buyers finding it harder and harder to get onto the property ladder.
Combining purchasing power with other individuals has become a more commonplace method of home ownership, with data from a NAB survey last year finding that outside of dropping their price range, purchasing a property with another person tops the list of compromises young would-be buyers are willing to make.
Four in 10 young Australians have revealed they would look to buy a property with someone other than a romantic partner.
It was recently revealed that would-be first home buyers are scrimping on the basics to stop overpaying rent and transition into home ownership.
Concerningly, almost a quarter of would-be first-time buyers reported that they are cutting back on medical and wellness costs, such as physical therapy and chiropractic services.
A similar number reported that they have cancelled gym and fitness memberships.
More than half are cutting back on dining out and takeaway food, while 48 per cent have cut out takeaway coffees to gather a deposit.
A third reported that they are working above their normal hours, accruing overtime, to save money, and 24 per cent said they are taking on second jobs outside of their other working hours to boost property savings.
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