If you’re interested in co-ownership with us, you probably have a few questions about the process. We’ve provided answers to some of the more common questions we get asked below.
Home Ownership with YouOwn
How do you qualify?
In order to qualify for co-ownership, you need to be a New Zealand Citizen or Permanent Resident, have a 5% deposit from savings or Kiwisaver, be less than $15k in debt, have a household income above the median in your location.
Are home loans easier to get?
The deposit of 5% is lower than the standard deposit requirement of 20%, which opens up home ownership to many more financially capable buyers. There is no income cap, YouOwn partners with specific lenders who have systems in place for YouOwn's home ownership products.
Is there a minimum income?
There is no minimum income but to buy a house, you generally need household income of more than $130,000 to borrow enough with 5% deposit.
Can you rent your property?
If your financial or situational circumstances change, yes, you may rent the property.
How do I repay YouOwn?
After five years you will have paid off some of your home loan. You can redraw this amount to repay YouOwn.
How much deposit do I need?
The deposit requirement on a property is only 5%, which is much less than the standard 20% required by banks due to the loan-to-value ratio restrictions.
What is co-ownership of property?
Co-ownership of a property means owning a home with a third party. So, instead of you paying a 20% deposit, you pay a smaller deposit for a share of the home and buy out the third party when you are able to, after the first five years.
How do I buy my own house?
To buy your own house you put a financial plan together to repay or reduce debt and have a deposit of 5%. It is a good idea to have an idea of how much houses cost in the location you want to live and how much you can borrow.
Purchase Process
Can I buy any house?
The programme is for new houses supplied by recognised building companies and well built existing houses and apartments.
How do we obtain a loan?
We can put you in contact with one of our financial partners to talk about your home lending options.
Who decides the market value of the house?
The lender will require a market valuation from an independent registered valuer.
Co-Ownership with YouOwn
What role does YouOwn play as co-owner?
YouOwn plays a passive role. You are always the majority owner. When the property is sold, we get our share of the sale price.
How often can I increase my share in the house?
At any time after the fifth anniversary.
Is there a time frame for me to achieve full ownership of the house?
No – YouOwn will own the house with you until you buy our share or sell the house.
What is the cost of co-ownership?
There is an equity charge on the amount of YouOwn’s share. This is fixed and is payable monthly. When you buy your home at the outset, there is a fee of $1,100. You pay the costs of obtaining a home loan, such as legal, valuation and any loan application fees.
What other costs will the homeowner have?
The usual costs of home ownership including rates, insurance and maintenance.
What does co-ownership of a house mean?
‘Co-ownership’ means you are buying your house with someone else. So, instead of owning 100% of your home, you own 75% to 85% of the property depending on how much you can afford. You pay a monthly equity fee to the third party, and after five years you can buy their share of the house, and become the complete owner.
What are the benefits of co-ownership?
There are many benefits to co-ownership such as; security of tenure, being on the property ladder, a smaller deposit, no time pressure to buy the entire property, lenders who specialise in lending for co-ownership, payments are less than having a mortgage over the whole house.
What is co-ownership of property?
Co-ownership of a property means owning a home with a third party. So, instead of you paying a 20% deposit, you pay a smaller deposit for a share of the home and buy out the third party when you are able to, after the first five years.