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A new co-ownership app has launched that aims to help home buyers purchase and manage property together.
A new app, Co-operty, has launched to help buyers clear the legal and financial hurdles of purchasing property together.
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The platform helps hopeful buyers come together with family or friends to set up their co-ownership agreement digitally and engage with relevant related parties, such as conveyancers and mortgage brokers.
Through the process, buyers can register 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.
The app can also provide referrals and guidance for financing by connecting users with a mortgage broker through a partnership with Effi.
It also utilises lawlab for conveyancing support, PropTrack for property valuations, Life Sherpa for financial planning, and Simple KYC to authenticate any family trust or corporate entities being used to co-buy the property.
The objective is to make co-ownership easy and accessible via its online platform that supports buyers through the end-to-end home purchase transaction and in managing ongoing co-ownership.
With the “bank of mum and dad” becoming a growing player in the lending landscape, Co-operty espouses the benefit of setting up co-ownership agreements between parents and children, which allows the older generation to retain their assets while giving their children 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 chief executive 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.”
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.”
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.
“We’ve secured a network of trusted partners who have the right expertise for co-buying, co-borrowing and co-owning scenarios,” Rochaix said.
“The Co-operty team is really looking forward to helping professional advisers – like accountants, lawyers, mortgage brokers and financial planners – understand and unlock the co-ownership opportunity for their clients.”
According to Rochaix, who has previously held senior positions at AFG, Volt Bank, and Pepper Money, more than 70 per cent of Australians engage a mortgage broker as a trusted adviser to help them find the right way to purchase a property, including its financing and ownership structure.
She said that the proptech’s go-to-market strategy was to therefore partner predominantly with mortgage brokers in addition to engaging with potential customers via direct channels.
“We’re really keen to support mortgage brokers with resources about co-ownership so they can provide a financial solution that is tailored to each client’s individual circumstances,” Rochaix said.
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