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Looking for investor for co/shared home ownership

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TempPauper | 20 Jan 2015, 09:00 AM Agree 0
Could anyone tell me where I may source a potential investor for my home. I am looking for an investor to purchase a 1/3 share of a house for $210,000 at a cost of $160,000 for a term between 5 to 10 years, returns being a share of capital gain on sale, and a nominal monthly interest payment and of course $50,000 upfront? The property is situated in a suburb Quinns Rocks, Perth WA is less than 2km from the beach and where the suburb was lacking infrastructure a few years ago, it has recently seen new shopping centres, a train station with more planned over the next 24 months. This is a last resort out of desperation idea, genuine with no catches and of course, subject to any agreement being drawn up legally and above board.

  • Awesome Lending Solutions | 13 Feb 2015, 02:15 PM Agree 1
    Hi TempPauper,
    There are several Vendor Finance Groups around who should be able to assist you if you want to have an individual purchase a share of the property.

    There is another option available though with is a EquityShare Loan. This is a no interest loan where the Bank takes a share of the property, lets says a 20% share which it lends you the money for but does not charge you interest against. What they do take is a share of the equity which is double the loan share. So in this where they took a 20% share it would be a 40% share in any increase in value.

    So for your example if the third share was $210,000, I would assume the house is worth $630,000. If it goes up in value over the next 5 years by 30% to $819,00 you would have to pay the lender 60% of the difference. So out of the new equity of $189,000 you would pay the lender $113,400 out of the equity when you sell or refinance.

    However you have not paid interest on the $210,000 so would save around $53,000 in interest (based on 5% interest rate).

    On the other hand the private person would be looking for their 30% of the increased equity or $56,700, and a 30% share of any rental income etc.

    If you would like to discuss please feel free to call me on 1300 761 988
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