User:MikeWisg/Co-investment Model for Residential Property

Co-investment Model for Residential Property

The Co-investment Model is a new form of housing tenure for the UK mainstream housing market. The model has been developed to assist all existing and prospective house buyers to move onto, up and down the property ladder.

First announced in the Financial Times on 31st October 2009, the Co-investment Model is a term used to describe the means by which an individual can buy any residential property in partnership with a property investor. The concept was created by Mill Group, a UK based property and investment company.

Initially, the individual simply purchases a part-share of a property (requiring a smaller deposit and mortgage) and the property investor will purchase the remaining portion. In return, the property investor will require an annual levy or co-investment charge for their share.

Thereafter, the individual has the option to acquire further equity in the property until they have purchased.100 per cent of the equity

Benefits to the Individual:

- smaller deposit needed, so takes less time to save for it - ability to own home and share in capital growth sooner - help/reassurance in selecting property that is sound financial investment

Benefits to the Property Investor: - greater access to UK Residential property market - solid long term capital and income returns - removes some major risks associated with typical residential property investment including: void periods, level of maintenance and operating costs

External links

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