What is Co-Ownership?

Is Co-Ownership new?

Co-Ownership is not new; it originated in the 1960s when the model of shared ownership became popular with yachts and private jets. Owners realised it was inefficient to bear the high purchase and maintenance costs for something they only used occasionally. This principle was later applied to holiday properties, as many owners found that they only used their holiday homes for a few weeks each year (on average 8-10 weeks), while bearing most of the costs alone.

An example of the growing popularity of this model is the boom in "Fractional Ownership" of holiday homes in the USA in the 1990s. This developed from the need to make better and more efficient use of high-end properties and luxury goods by sharing the costs and benefits among multiple parties.

What does Co-Ownership mean?

Co-Ownership means that several people jointly own an asset. In the context of real estate, Co-Ownership refers to multiple co-owners each owning a defined share of a property. Each owner has the right to use the property for certain periods and bears a proportional share of the costs for acquisition, upkeep, and management. This model allows people to enjoy a high-end property without bearing the full costs and responsibility.

Key features of Co-Ownership:

• True property ownership:Unlike the timeshare model, where only a limited right of use is acquired, co-owners hold actual property ownership, secured through the land registry. Up to four shares can be purchased, according to individual usage preferences – a "right-sized" portion of ownership, with costs only for what is actually used.

• Cost efficiency: Statistically, holiday properties are only used by their owners for 8 to 10 weeks per year on average. Co-Ownership bridges this gap by allowing multiple owners to share the property, thus optimising the costs.

• Environmental and community benefits: An empty holiday home often brings no benefits to the local economy. However, when a property is continuously used, it supports local infrastructure and boosts economic development.

Where is Co-Ownership applied today?

Co-Ownership is widely used around the world today. In highly desirable holiday regions such as the Alps, Mallorca, the Côte d’Azur, and Florida, properties are often acquired through this model. It is also gaining popularity in other areas of the USA, such as California, Colorado, and New York, as well as in European countries like Sweden, known for its "sharing-friendly" economy. This development highlights why companies like MYNE have expanded into Sweden. The approach allows people access to holiday properties in prime locations at affordable prices.

The shared ownership principle is not only applied to holiday homes but also in other sectors, such as farmland, artworks, and even luxury goods like yachts, cars, and clothing. A recent Galileo report highlighted that luxury cars and designer clothing are increasingly shared to make their use more efficient and sustainable. This growing interest in Co-Ownership and sharing models shows how the market is expanding beyond the real estate sector. More details can be found in the Galileo report.

Additionally, an EY study shows that Co-Ownership provides 19 times more people with access to high-quality holiday properties than sole ownership. This clearly demonstrates how the model brings the dream of owning a holiday home closer to a broader population. The study also expects that the vacancy rate of holiday homes can be reduced from the current 80% to 40% through Co-Ownership, providing both economic and environmental benefits.

Why is Co-Ownership becoming more popular?

Rising property prices in popular holiday regions are making it increasingly difficult for many people to acquire a holiday home in sole ownership. Co-Ownership offers a solution by making the dream of owning a holiday property more affordable for a wider group of people. By allowing the costs to be shared, entering the holiday property market becomes more realistic and sustainable.

Managed Co-Ownership is gaining popularity, especially with its all-inclusive service. In addition to professional acquisition, management, and maintenance of the property – which can be particularly challenging abroad due to legal and tax structures – communication between co-owners, partners, and authorities is also handled. Sophisticated reservation systems ensure fair use and prevent conflicts between co-owners. The digitalisation of various processes, such as apps for managing reservations, ensures a completely relaxing stay.

Co-Ownership is an attractive alternative to sole ownership, especially in the holiday property sector. It allows ownership of high-quality and luxurious properties at a fraction of the cost, while also offering flexibility and a completely relaxing experience, without having to worry about organisational matters.