What is co-ownership?

Co-ownership is a type of ownership which can be applied to housing, businesses or other assets when more than one individual or company share the item in question.

In housing terms, co-ownership occurs when two or more individuals own a percentage of a property or piece of land. It can apply to investment homes, holiday homes, land to build on or housing to live in.

Co-ownership is usually utilised because housing is unaffordable and the opportunity to own with another person decreases risk, increases affordability and quickens the purchase process. Currently Australia is one of the most expensive countries in the world and co-ownership is increasing.

Before co-owning with another person, you should plan where you want to live, where you want to buy and how you want to purchase. This may include whether you want to live in or invest, whether you want a detached property or an apartment or whether you want to buy pre-existing or build a brand new property.

Once you have decided on these factors it is time to find your co-owner.

In traditional settings, co-ownership will apply between partners, friends or family. You can buy 50%, 33% or 25% (or other) depending on how many others you purchase with and whether the split is equal or variable depending on deposit amounts and buying capacity.

Mortgage Mates applies co-ownership to a new cohort of individuals looking to own their own home. We match two or more users to each other to co-own a home together based on housing preferences, location and deposit amount.

Mortgage Mates has been created for two reasons. Firstly, some individuals who cannot afford to own a home outright, do not have family and friends who are also looking to purchase property. It may be that friends have already bought with a partner, or circumstances have changed and they are seeking home ownership at a different time to their closest friends and family.

Secondly, by buying with a stranger after specifying your housing preferences you are more likely to buy the type of property you want, in the location you want to buy in. You will not compromise on the cost of the accommodation or the legal agreements you want in place because you do not have an emotional attachment to the person you are buying with.

We believe our version of co-ownership is quicker, cheaper and safer than alternative options of owning a home.

To ensure your rights, and the rights of your co-owner are met throughout the duration of the co-ownership, you can chose a specific mortgage which facilitates owning a property with some one else, and complete a legal agreement (called a co-ownership agreement) which sets out the terms and conditions of your purchase.

Each party can establish how long they want to own for, when they can sell, what happens if an owner defaults and other important items relevant to the property. There are now a number of law firms and companies who specialise in affordable, usable and specific co-ownership agreements which can work best for your needs. Whilst Mortgage Mates does not recommend a particular agreement, we do recommend seeking independent legal advice to ensure you are protected in every aspect of your co-ownership journey.

Some options for legal support can be found here:

If you are interested in learning more about “the Tinder of Home Ownership” please head over to www.mortgagemates.com.au where our platform also provides information on mortgages and real estate options to help you in your journey into co-ownership.

Everyone, knows some one, who cannot afford to own their own home, and we are their solution.