Kohab, the world’s first digital platform, community and marketplace for co-ownership, recently launched.
The unique platform helps friends, family and like-minded buyers purchase a home together, connecting them with the right property, real estate agent, legal, mortgage and insurance providers all in the one place. Platform partners such as Sparke Helmore and National Australia Bank have been specifically selected by Kohab for their expertise in property co-ownership.
Single property ownership has become out of reach for many. Young people who otherwise want to buy property, are often forced to live with their parents due to rapidly increasing property prices, which have outstripped wage growth.
Kohab Founder and CEO David Dawson says, “We believe that co-ownership is an often-overlooked method of owning property and may hold the key to that dream being reignited, allowing many Australians to take the first step on the property market ladder.”
National Research commissioned by Kohab in February 2018 of over 1,700 Australians, found that of those who currently don’t own property, the challenge of saving enough for a deposit and being unable to afford a property in their preferred location were cited as the main reasons for being unable to accomplish that life goal.
Interestingly, the research also found that 27% of respondents would consider buying a property with someone else, whilst a further 9% would consider co-ownership if they were equipped with more information. Consideration of co-ownership was even higher in the key cities.
David continues, “The phenomenal growth of brands such as Uber and Airbnb have clearly demonstrated that the share economy is alive and thriving. These types of concepts have created a seismic shift in how society views co-sharing in general. As such, Kohab aspires to be the global platform and marketplace for property co-ownership.”
How exactly does Kohab work?
In terms of its function, Kohab will help potential buyers in three main ways: by co-living (whereby one or both parties choose to live in the property), co-investing in property, and thirdly co-lifestyle; facilitating two or more parties to share a holiday home or second home.
The platforms simple processes will steer buyers through the key steps to co-ownership; including the Kohab co-ownership agreement. This standardised legal agreement has been specifically developed by legal firm Sparke Helmore (in collaboration with Kohab), to provide a safe, transparent and secure way to buy and (sell) property together.
Co-buyers are also referred to Kohab’s mortgage and insurance partners, helping them navigate through the co-ownership journey in an easy to follow, step-by-step format.
Kohab is all about real people, real titles and real property ownership. Kohab do not charge their members for being part of the community. The introduction of co-ownership mortgage products holds each party responsible for their part of the loan only. This means individuals do not have to guarantee their co-buyers mortgage repayments and if buying ½ or ¼ of the property, their deposit and repayments are based only on that percentage ownership.
Already in development and coming soon, the platform will also enable existing property owners to unlock equity and sell a portion of their property, which may appeal to existing investors or an older demographic.
David concludes, “With Sydney and Melbourne now ranking the 2nd and 5th most unaffordable cities in the world, Kohab will offer one of the key answers to the housing affordability issue in Australia. We want to see more Australians ultimately owning their own home, and we are committed to educating the market on co-ownership options and facilitating those opportunities.”
The company is led by two founders; David Dawson (Founder and CEO), former Managing Director and Chairman of Profusion Group, and Darren Clark (Co-Founder and Technical Director), Founder and Technical Director at a digital agency which was acquired by J. Walter Thompson Sydney in 2015. The launch executive team includes CMO, Lewis Pullen, who previously headed up Marketing for the Satellite Division of IAG, NRL and Qantas, and Sales Director, Andrew Thain, who was previously a Director with Morrow Sodali Australia.