- Kicked off by Pacaso in the USA in 2020, co-ownership is trending globally.
- In 2022 Ko brought co-ownership to APAC, offering a 5 star experience.
- Ko allows 1/8 shares for 42 days per year, which maximises asset usage.
Over the past few years, many of us have rethought the spaces we live in, as a result of spending more time with loved ones or working from home. This shift helped kickstart a global co-ownership trend, particularly across the United States and Europe, where luxury holiday homes are now fractionally owned by a number of investors. With the arrival of proptech platform Ko, Australia has at last joined the luxury home co-ownership movement.
Fractional ownership is an attractive alternative for those who want more usage for their investment. It can also help aspiring buyers achieve their dream of owning a luxury holiday home sooner, at a fraction of the cost.
Previously, the challenge with buying luxury homes has been one of usage versus the initial and ongoing costs. It can be a lot of money for an individual to invest in a property that might sit unused for most of the year. Renting the property out for short-term accommodation might help with the cost, but often brings more hassles with the management required and the potential for guests to disrespect the property.
Unlike a timeshare arrangement, where you only pay for usage, co-ownership lets you own your slice of paradise and the equity that comes with it. This means that all other co-owners are also invested in the property and have a shared interest in giving their home and your investment the respect and care it deserves.
With shared property management, there are no more hassles of owning a property that might be further away, navigating legal logistics and maintenance. Co-ownership is a flexible and innovative solution, and its here to stay.
Let’s take a look at six co-ownership platforms that are changing the way we think about investing in luxury property.
Co-founders Ryan Fritsch and John Hanna have improved the traditional holiday real estate model in the Asia-Pacific by introducing fractional ownership of luxury properties to the region.
Founded in 2022, and based in Sydney Australia, Ko allows people to own as little as a one-eighth share of their property, and enjoy an annual usage of up to 42 days per share, managed through its dynamic scheduling system.
For those who love a five star experience, Ko delivers buyers a curated, fully managed luxury holiday without a hefty price tag. The company covers the whole upkeep of the properties, including repairs and housekeeping, and only requires the house to be vacated for two weeks out of the year to accommodate for any necessary maintenance.
Ko offers stunning properties in Australia, Malaysia, Japan, and Indonesia, with more luxury properties becoming available all the time. Have a sneak peak at expansive luxury farmhouse “Poppaea” in the New South Wales Southern Highlands. An opulent smart home residence with 360° views of the countryside, this property has eight shares available, just a short drive from Sydney.
The Ko platform provides a unique and transparent value proposition for both buyers and sellers, and word is spreading fast about the benefits. Ko is an easy and safe way to invest in luxury properties and a legitimate asset to have in everyone’s portfolio.
Based in North America, Pacaso is the biggest co-ownership platform globally.
The proptech real estate company was founded in 2020 by Zillow alumni, Austin Allison and Spencer Rascoff, offering co-ownership of luxury properties in the US, and they have now expanded to Europe.
Pacaso’s flexible ownership model allows for upgrades, reselling, and transferring to a less expensive home. The model has gained popularity among those who want a second home but can’t afford one on their own, as they offer five per cent deposits and up to 70 per cent financing.
Pacaso has raised a total of $1.5B in funding over 7 rounds from 24 investors.
Pacaso emphasises supporting communities by occupying homes for nearly 90 per cent of the year, resulting in increased local business spending.
Kocomo is a North American startup that offers co-owned luxury vacation homes worldwide, founded by CEO Martin Schrimpff, who was frustrated with the wastefulness and inaccessibility of traditional vacation home ownership.
Kocomo’s comprehensive offering removes pain points associated with traditional vacation home ownership or rentals. Their due diligence process includes ensuring appropriate titles, regulations, and upkeep standards, and restyling the home with a professional designer.
Each home has a 24/7 concierge, smart home, remote work setup, owner storage, and they cater to individual favourite necessities like shampoo and toiletries – similar to a resort. Kocomo launched in Mexico and plans to expand globally to locations that embrace local culture, provide access to outdoor activities, and showcase natural beauty.
Based in North America, Ember was founded in June 2021 by CEO Kurt Avarell (Canopy, Milbank), and received $17.4M financing in 2022 led by co-founder of PayPal, early Facebook investor, and venture capitalist, Peter Thiel.
The real estate proptech company manages building or purchasing designer vacation homes, furnishing, and management via an app so that owners can enjoy their home without scheduling conflicts. They offer planned, last-minute, and holiday stays, and the option to rent out unused time.
Owners can increase their annual allotment of nights by purchasing additional shares, and the property concierge is available to solve any problems. Ember pays a premium for vacation homes, allowing owners to receive cash liquidity while remaining an owner, keeping the amount of ownership that’s right for them.
Founded in 2021 by Labib Kaddoura and Wadih Abou Bechara, London-based Fractal is a technology company that modernises second-home ownership, and has raised $30 million in a seed round in 2023. Fractal’s platform enables multiple investors to own a minimum share of six weeks of occupancy in a luxury home in a European city.
Fractal’s blockchain-powered fractional ownership system allows secure and efficient buying and selling of shares, as well as rental income management. They handle maintenance and management and offer luxury services like housekeeping and a personal concierge.
The debt capital will go towards the acquisition of luxury properties in sought-after destinations in West London — such as Knightsbridge, Notting Hill, Chelsea, Kensington and Mayfair.
MYNE Homes was founded in Berlin, Germany in 2021 by Fabian Löhmer and Nikolaus Thomale. The platform offers a co-ownership model that enables clients to invest in a variety of European properties with as little as a 10 per cent investment.
They handle all the details of the investment, from property acquisition and management to tenant placement and maintenance. MYNE Homes takes care of sales, professional property valuation, renovation and furnishing, value-oriented management, and coordination of all service providers, allowing co-owners to enjoy a passive investment experience.
This model offers an opportunity for individuals who lack the capital or expertise to invest in real estate on their own. With their knowledge of the local real estate market and their commitment to providing exceptional customer service, MYNE Homes is an ideal partner for anyone interested in exploring the co-ownership model of real estate investing.
Prello.co is a French platform founded in 2021 by Ludovic de Jouvancourt de Channes and Sébastien Gal, that enables individuals to buy a share of a secondary high-standard European residence with others, in the form of an SCI of attribution.
They raised €1.75M Pre-seed and a second seed funding of €13M in 2022. With Prello, you can own a real estate asset rather than just a right of use, and you can keep control of charges and protect yourself through an innovative French law contract. Flexible benefits include a turnkey concierge, maintenance, and upkeep service.
With Prello’s co-acquisition service, you can become a co-owner with up to seven other people, share acquisition and maintenance costs, and enjoy it for 44 days a year per unit and whenever you want, while Prello takes care of the management and rental of your residence. Prello’s services include buy alone, buy together, renovate and furnish a la carte, and rent out a la carte.
Altacasa was founded in 2021 by Romain Saint Guilhem, Maureen Houel and Axel Talmet in London, United Kingdom. This co-ownership company allows individuals to purchase shares of a second home in the UK and Europe. The costs are transparent and shared proportionally between co-owners, with each individual paying based on the number of shares they hold.
Altacasa provides a platform for booking stays, managing the property, and tracking costs. Altcasa have developed a fair and equitable proptech platform that enables owners to maximise the use of their home. Owners can easily book their stays through the Altacasa app and get access to all the relevant information about their stays in real-time.
Altacasa has raised €2M and closed its last funding round on September 22, 2021, from a Pre-Seed round. The startup has an office in Paris and one in London to be as close as possible to its clients.