Your search results

FAQS ON CO-OWNERSHIP PROPERTIES

The new way to own a second home without ruining yourself in the process. Of course, this raises some questions. Here you will find a list of the most frequently asked questions of our experts: taxation, co-ownership, costs, works, financing, resale… We explain everything to you.

Buying my second home

-Understanding the concept

This allows you to buy a share of your second home with other people (strangers or friends), in the form of a legal structure holding your property (between 1/8th and half of the property) and to fully delegate the management of the property.

You can stay in your second home 44 days a year (for 1/8th of the property price or buy more shares up to half of the property). The concierge company in place manages relations between the owners, the maintenance, cleaning and rentals in your absence.

 

-You buy a premium property at a fraction of the cost.

-You buy a premium property therefore the location, location, location concept guarantees the capital growth of your asset.

-You divide your maintenance costs and taxes for running the property by as many shares as there are in the SCI.

A virtual or/and physical visits to each of the properties on sale can be organised of course.  

The legal structure is a type of SCI (société civile immobilière). The partners of this SCI are joint owners of a property (they legally own the property and no one else) in which they can stay according to the dates they choose.

One could say that co-ownership and time-sharing allow as many people as possible to access the dream of a premium second home. The comparison ends there.


Timesharing is just what it is, that is that in the end, you only just own time and no real estate!

 

The solution and service offered by co-ownership allow you, unlike time-sharing:
– To actually own (via a company) a property asset and not just the right to use is (or time…).

-They say it is all about location, location so you can choose carefully any property on the real estate markets.

– To keep control of the service charges and protect you from a possible bad-paying co-owner thanks to an innovative French law contract.

– To benefit in a flexible way (and not a fixed week) from the enjoyment of your property (from as little as 2 or 3 nights in general)

– To benefit from a turnkey concierge, maintenance and upkeep service, in order to generate additional income without doing anything when you are not enjoying your second home.

-how do you purchase a part of your property?

Usually, you can buy between 1 and 4 shares/8 of the same property, depending on the number of days you wish to stay there per year and your budget (1 share = 44 days, 2 shares = 88 days, 3 shares = 132 days, 4 shares = 176 days). Why 4 max? To avoid having a majority shareholder (always a minimum of two shareholders) who alone can influence all the decisions of the SCI. On the other hand, you can buy as many shares as you want in other properties.

Of course, acquiring a second home can be done with loved ones, family or friends!

Yes, you can buy one (or more) share(s) in joint ownership as a couple or with relatives. Your 2 names will appear on the legal documents.

Yes, it is fine to buy a second home share via an SCI as a foreigner or non-resident as it is to buy the whole property.

For example in France, for Tax: you will be liable for the wealth tax (IFI) if the net amount of your real estate assets in France is greater than 1,300,000 euros (which of course co-ownership mitigates greatly). You will have to declare in France any rental income generated by the rental of your second home. You can also be taxed in your country of residence on the difference already paid in France or Spain (UK for example has a double treaty agreement in place even after Brexit).

There is no formal meeting scheduled between the co-owners during the purchase process. It is, however, entirely possible.

Of course, when you book a stay in your property, you obviously enjoy the entirety of the property (show-offs can even post on Insta from their provencal country pile or Chalet in the Alps…LOL). The other owners will enjoy the property during the stays they have reserved. In other words, you will never stay in your property at the same time as the other co-owners. On the other hand, you can of course invite relatives/friends when you stay in your second home or have them stay on their own.

It all depends on how you fund your purchase! There are several options:
– You buy cash: you can enjoy your property as soon as we have registered the transfer of titles. It takes between 48 hours and 3 weeks in general.


– You buy using a mortgage: as soon as you have signed your loan and signed the transfer of titles. It can take between 3 and 5 months for non-residents.

When you buy a second home share through an SCI, you also buy the furniture that makes up the property. You therefore indirectly hold 1/8th of the value of the furniture and equipment in the house if you own one 1/8th share and proportionally if you own more.

Of course, it is like purchasing any other property. In France it is 14 days.

There are two categories:

-The properties already owned by the co-ownership company, ready to be sold in shares and enjoyed.

-The properties selected to be sold in shares but not yet owned (can be in the process of being purchased). Once this is done, they will be offered as shares. 

how is my property managed?

Reserve your stay

Reservations are made directly on the rental management system, often a mobile app that you can use on your phone or laptop. Usually the calendar is open 24 months in advance (contact us once you see the property that you like). In addition, we strive to choose co-owners with complementary profiles in order to reconcile everyone’s stay preferences.

Each share (1/8th) gives access to a total quota of 44 nights, divided between the different seasons:
– The High season has 56 days, i.e. 7 per unit
– The Middle season has 64 days, i.e. 8 per co-owner
– The Low season has 232 days, or 29 per co-owner


Of course, the more shares you buy, the more your total quota of nights increases (2 shares = 88 nights, 3 shares = 132 nights, 4 shares = 176 nights).
The total number of nights is 352. The balance allows the rental company to maintain the house in the absence of the co-owners or to let it out as a short-term rental in order to generate income for the owners.

Property management rules can be slight different but in general this is how it works. Each share entitles you to the reservation of 4 simultaneous stays. Each stay has a duration of 2 to 7 days.

You can book two consecutive stays (i.e. up to 14 consecutive days for one share held).
In addition, “last minute” reservations (made less than 21 days before the start of the stay) do not count towards the quota of these 4 simultaneous reservations.

You can book between 24 months and 2 days in advance. Stays in High and Medium seasons are reserved via a system of options, which are validated 120 days before the date of the stay.

In order to reflect the demand of the second home market, the calendar usually offers 3 seasons: High, Medium and Low. A share (1/8th) guarantees you at least 1 week in High Season if you take a villa in the south in July/August for example.

In summary, if you make a concession, you earn points, and these points will most certainly give you priority in a future arbitration.

In Low Season, reservations are made directly by the co-owners, the only limit being their quota of remaining nights.

Compare Listings