Your Guide to Understanding Co-ownership Costs

July 13, 2022 • Co-Ownership 411

When it comes to purchasing a holiday home, costs are high on the list of considerations for most people. It’s no secret that owning a holiday home can be costly – on top of buying a home, you need to account for furniture, utilities, management and upkeep of the property, just to name a few.

This is one of the reasons why co-ownership of a holiday home is increasing in popularity around the world. In simple terms, co-ownership of a holiday home means you can enjoy the same luxurious home, at a fraction of the cost.

In this article, we breakdown the main cost categories that are involved in co-owning a holiday home with Kō:

  • Share(s)
  • Closing costs (property specific).
  • Property upkeep.
  • Property management.

Making Your Dream Holiday Home Yours

When you find the home of your dreams, Kō will facilitate the purchase by putting you in touch with the relevant sales agents.

Your upfront cost will be different depending on the property you chose. Each property can be fractionalised into up to 8 shares, and you can decide how many to purchase based on what’s available for sale. The availability and cost of each share are property specific.

What else is included in the upfront purchase cost?

  • Home contents (furniture, furnishings, and appliances).
  • Closing costs (property specific).
  • Kō service fee (10% of fraction price)
  • 6 months’ worth of fractions share of operating costs as reserve fund (property specific).

Upkeep & Maintenance

Remember when we said that co-owning a holiday home means the same benefit at a fraction of the cost? We weren’t lying. When you become a Kō owner, house expenses will be evenly shared between owners based on the ownership percentage each holds, with all costs made fully transparent.

The ongoing cost for maintenance and upkeep is billed monthly and it includes:

1. Utilities

This includes your normal bills such as gas, water, electricity, and sewer – all the basics to make your luxury home functional. For some homes, Wi-Fi is complimentary, otherwise, this is also included in the utility costs.

2. Cleaning

After each use, professional cleaners will ensure the property is clean and ready for the next owner. They will inspect the stock of consumables supplies and replenish as necessary.

3. Property Management

Kō partners with professional property managers that specialise in the areas where luxury holiday homes are located. The property management team takes care of the day-to-day of your home, so you don’t have to.

4. Property Taxes and Insurance

We provide full transparency over the taxes and insurance that are paid for as part of the ongoing fees of a Kō home. These are property and destination dependant.

5. Repairs Reserve Fund

Things can break or wear out, that’s when a repairs reserve fund comes in handy. If the repairs required are small and routinely, the property management team will see to them without seeking approval from owners. For bigger home improvements, owners will be asked to approve any expenses.

Fully Managed Home

The Kō platform fee costs AUD$150/month per co-owner.

Our state-of-the-art application ensures that you have a hassle-free holiday home ownership experience. It is there for Kō to manage the entire ownership experience, from owner bookings to the maintenance and administration of the property.

The management fee is fixed for all homes.

At Kō, we believe in the importance of transparency in pricing. Statements are shared with co-owners quarterly with a full reconciliation yearly. Owners will also receive a financial statement for their property, a balance sheet, and a cash-flow statement. Cost statements can be made available upon request. 

Disclaimer: Any product information is provided on a general advice basis only. Any advice has been prepared without taking into account any investor’s objective, financial situation or needs. The investor should then consider the appropriateness of the advice in light of their own circumstances before following the advice and seek professional personal advice from a financial adviser. 

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