What you need to know about new property co-ownership platform Kohab
There’s a new way to get on the property ladder with friends, family or even strangers
Unless you have a few million dollars to spare, getting on the property ladder is a daunting prospect for many. Saving up for a deposit, as well as deciphering the jargon around home loans and competing with the many other people jostling to own their own homes, can make buying a house seem like just too much hard work.
But now, there’s a new app called Kohab that launched across Australia on Monday, one that helps family, friends and likeminded would-be property owners band together to co-own.
To find out more, 9Saver has created a simple guide to what you need to know about Kohab.
What exactly is it?
Kohab is a new app that allows would-be property owners to team up with friends, family members or other members of the Kohab community to become co-owners of properties. Unlike apps such as Brickx — which allows you to invest amounst as small as $100 into properties — Kohab provides the infrastructure needed for a small group of people to collectively own a property. Areas such as a co-ownership agreement, legal support, and suggesting loans and insurance options through their partners — which include Sparke Helmore and National Australia Bank.
“The phenomenal growth of brands such as Uber and Airbnb have clearly demonstrated that the share economy is alive and thriving. These types of concepts have created a seismic shift in how society views co-sharing in general. As such, Kohab aspires to be the global platform and marketplace for property co-ownership,” Kohab Founder and CEO David Dawson said.
Examples of people who may consider co-ownership include:
- Flatmates who want to go from renting to owning together as they aren’t able to afford property alone.
- Parents who want to co-own with their children to help the latter onto the property ladder.
- Friends who may want to co-own a holiday house.
How do you do it?
If you want to co-own with parents or friends – it may be hard to find an appropriate property to invest in together. Plus, unless you have a property lawyer in the family, or are one yourself, the legalities can easily get tricky.
Kohab’s Unique Selling Proposition is that they can help you through the process from beginning to end. You sign up for free, browse their properties and can look for people to co-own with who are also on the platform. Part of the one-stop property shop — Kohab can help you create a co-owner ship agreement with their legal partners. This legal agreement will help you define ownership structure and any exit strategies you might need. Realistically, you might be best mates or partners now, but life changes.
It’s worth noting that while Kohab’s research from February 2018 showed that 27% of respondents would consider buying a property with someone else, and 9% would consider co-ownership if they were equipped with more information, their research also showed that 65% of people haven’t heard of a co-ownership agreement, so doing your reading before you get involved is important.
Read up on government rules and regulations around property ownership, and also check out government advice on your rights and responsibilities as co-owners if you want to rent the property out.
What are the pros and cons?
Clearly it’s going to be cheaper in the outset to buy a portion of a property than buying a whole property. But don’t forget that you will have to co-own (obviously) or live with the people you invest with, so consider if you can manage compromising with others to gain the lower costs. Other fiscal benefits can include shared responsibility for bills, strata rates and mortgage repayments.
If you are concerned, seek independent advice before going ahead with any co-ownership agreement.
Any advice provided is general in nature and does not take account of your needs, objectives or financial situation. Individuals should consider their own circumstances, and if in doubt seek appropriate advice, before proceeding.