Luxebook November 2022

Everyone wants the perfect holiday home in their favourite destination abroad. And while investing in international real estate is never considered bad, you can certainly turn this worthwhile investment into an even better one with co-ownership. A popular concept in the West, coownership is a great way to save on tax, and share maintenance costs around owning second or holiday homes. To sum up the benefits, co-ownership can help people invest in multiple properties at different destinations, at an affordable rate,with the same benefits and an improved profit rate. “A second home or vacation home is a dream for many. However, finding the right home, vetting, and going through the legal formalities is a challenge, which is where the concept of co-ownership comes in,” says Sudeep Chandran of YOURS Luxury Homes, India’s first and only co-ownership platform based in Bengaluru. How co-ownership works As the name suggests, co-ownership of property is where the ownership is shared with another individual or group, with each owner holding a percentage of the The co-ownership solution to holiday homes Altacasa Looking for a second home abroad? Here’s why you should opt for co-ownership instead BY SCHENELLE DSOUZA a property can have as many owners as needed. There is no limit on the number of owners, and tenants may have unequal investment stakes, meaning owners can choose their per cent of share in the property and pay the corresponding amount for that share. For example, if one property is owned by three buyers and the shares are split into 50, 30 and 20 per cent, the investment cost in the property would also be split into 50, 30 and 20 per cent for each respective buyer. Furthermore, the owner with the bigger investment gets to spend more time in the home compared to the owner with the smaller investment. asset. The rights of each owner are typically defined in accordance with a contract or written agreement, which often includes the treatment of revenue and tax obligations. Additionally, the amount of the share may vary depending on the form of co-ownership and the agreement between said owners. There are multiple forms of co-ownership including joint tenancy, tenancy in entirety, co-parcenary, and tenancy-in-common. The first three are associated with hereditary shares or shares between family members, the most common types of co-ownership. Tenancy-incommon (TIC) is a newly popularised concept, wherein RENT AND LEASE 52|L U X E B O O K|N O V E MB E R 2 0 2 2 N O V E MB E R 2 0 2 2 |L U X E B O O K| 53