While it might still be all smiles on the reality show Luxe Listings Sydney, it’s no secret that the past year has not been kind to the luxury property market in Australia. With investors seemingly cautious about the economic outlook, some are exploring alternatives to lower their investment costs or divest part of their property portfolio.

Co-ownership is one of these alternatives that’s on the rise worldwide, with companies like Pacaso disrupting markets in the U.S. and Europe over the past two years. Now it’s the Asia-Pacific region’s turn, with the arrival of Ko, the region’s first co-ownership platform for luxury holiday homes. 

While some may be familiar with co-ownership through syndicates for high-end assets such as private jets or yachts, how it functions for luxury property can be slightly different. With that in mind, we asked one of the founders of Ko, Ryan Fritsch, our top questions about luxury holiday home co-ownership.   

Firstly, and the best place to start. What is Ko?

We designed Ko as the luxury holiday home co-ownership platform for the Asia-Pacific region. We aim to provide a smarter solution for owning a holiday home in Australia and Southeast Asia. The Ko platform manages the entire home ownership experience, and we pride ourselves on acting transparently and keeping things fair for all owners. 

Once you become a Ko-owner, you can schedule your time at your holiday home using our advanced scheduling system, up to 42 days each year per share. We take care of everything else on your behalf, including utilities, cleaning, home and pool maintenance, repairs and insurance. You’ll get the benefits of owning a holiday home without any of the hassle, at a fraction of the cost. 

Available properties are located in holiday destinations around Australia, Indonesia, Japan and Malaysia, and will soon be available in Thailand and New Zealand. 

Let’s take “Poppaea” as an example. This exquisite 5-bedroom Ko home, located in the Southern Highlands of New South Wales in Australia, is valued at $1 million for a one-eighth share. It’s a contemporary and luxurious pavilion-style adaption of a 21st-century farmhouse. With a sophisticated design aesthetic throughout the home, it also features an opulent outdoor area with a mineral swimming pool, alfresco lounge and outdoor fireplace.

How does co-ownership with Ko work, and what are the benefits?

The price of each Ko home is divided into 8 equal shares and unlike a timeshare arrangement, it offers true ownership, not just the right to use the property. Buyers can purchase up to 4 shares, with each share equalling up to 42 bookable days a year. All owners get fair and equal access through our scheduling system, and maintain a right to their privacy, while still gaining flexible usage rights. 

For buyers, a key benefit is a lower entry point to owning a luxury holiday home. At a fraction of the cost, buyers can part-own an opulent holiday home. This can free up their cash to spend on creating lasting memories with their loved ones right now, rather than waiting for full ownership years down the track. 

A significant benefit for existing owners of luxury properties is that they can divest fractional ownership of their property while still owning up to half of the home and retaining access. As co-owners also have a stake in the property, the home will get the respect and care it deserves. 

We encourage anyone interested to read more about the benefits on our site and speak with our team to see if co-ownership is the right fit for them.

What costs are involved with co-ownership?

Owning a holiday home outright can be expensive. Aside from the initial purchase price, there are many other aspects including furniture, utilities, management and upkeep of the property to consider.

We break the costs of a Ko home into the upfront cost of a share and property-specific closing costs, and then ongoing costs for property upkeep and management. 

Upfront costs will be different depending on the specific Ko home you choose. Each property is fractionalised into 8 equal shares. The upfront costs include home contents including furniture, furnishings and appliances, closing costs, a Ko service fee equalling 10% of the price of each share owned and 6 months’ worth of the operating costs per shares owned as a reserve fund.

Ongoing costs are completely transparent, billed monthly, and include utilities, cleaning, property management, property taxes and insurance, and a repairs reserve fund. While the property team manages smaller repairs, more extensive home improvements require owners to approve expenses before proceeding.

The Ko platform costs $150 AUD per month per owner, with all other property costs split proportionally between owners

We’ve already created an online guide with more details to understand the costs of co-ownership for those interested to learn more. 

How many days at a property do I get each year as a Ko owner, and how do you keep it fair?

Every share in a Ko home equals up to 42 bookable days per year. We use our advanced scheduling system to keep things fair for each owner. Different owners will have different needs and desires, each with their own holiday preferences. We take these into account and help develop an optimal opportunity for access for every owner. 

Ko will be rolling out an app in the near future to manage the entire experience digitally, for its owners.

Also, thanks to our partnership with luxury property exchange platform, THIRDHOME, who have a network of 15,000 properties around the world, Ko owners can choose to become a member and trade their unused days at the property for stays at alternate destinations. You can find out more at thirdhome.com.

Can I resell my share(s)?

Absolutely! As an owner of a Ko home, you can sell your shares whenever you wish. You’ll also have complete control over the price, and the share(s) of the home can be listed privately, or sold on the Ko platform.

If co-owning or selling a luxury holiday home is of interest, take the opportunity to speak with Ryan and the team at Ko homes, visit our FAQs to learn more, or browse the properties already available around the Asia-Pacific region at ko.homes. 

For more details, please download the Information Memorandum here or contact us.

Any information or advice contained in this blog is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice in this blog, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. You should also seek independent financial advice prior to acquiring a financial product. All financial products involve risks. Past performance of any product described on this site is not a reliable indication of future performance. Ko Homes Pty Ltd is the Investment Manager of the Ko Homes Trust. It holds a Corporate Authorised Representative authorisation CAR No.1298188 from Quay Wholesale Fund Services Pty Ltd (Quay) (AFSL No. 528 526). Ko Homes Pty Ltd also holds a Corporate Authorised Representative authorisation from Quay allowing it to provide General Product Advice.

Related Reading:

We ask one of the founders of Ko our top questions about luxury property co-ownership

Ko brings luxury holiday homes within reach of more Australians

Thinking about a holiday home? Forget all the hassles with Ko