Co-ownership Property Investment Strategies

There is an emergence of a style of property investment that is taking a strong hold in various parts of the country.

Co-ownership or fractional ownership is becoming more and more popular as investors look at alternatives to the traditional style of investing.

Although not limited to, much of the buying using this style of ownership is used by investors in three categories:

1. the investor who wants to enter the property investment market but does not have sufficient capital to on their own and therefore sets up a trust with either some friends, family members or an investment group to purchase investment property; and
2. investors who want to invest in higher end properties such as canal homes or prestigious properties of other sorts where the investors are looking for higher capital growth because of the limited style of properties available for the demand, but who also do not have the funds to pay the deposits required
3. property investors who want own a part share of a holiday home or unit and this serves several purposes in that each owner can have their three weeks holiday each year and there is still some time to let out the property and cover daily expenses of owning the property, such as rates, body corporate fees, maintenance, electricity etc.

When using this style of property investing it is common for there to be about 8 investors in the ownership.  It could be 3 or 4 or even up to 15, but about 8 seems to be the most common number. 

In Noosa, Qld, there are projects either under way or ready to sell shortly where the developers are promoting this style of investing.

Filed Under: Investment Strategies

Tags: property investing in holiday units • property investment holiday homes • what is co-ownership of property