How much money do I need to get started?
You need a minimum of $500 to buy HouseShares™ but you can buy more if you wish. The more shares you buy, the bigger your stake in the housing market. There is no commitment to a monthly plan. Savers buy shares as and when they have the funds available.
How many HouseShares™ can I buy?
There's no limit to how many HouseShares™ you buy, or how much or how often you buy HouseShares™. In fact, owners are encouraged to spread their ownership across many different properties - as this helps reduce the risks of owning property in just one place, or at one time in the property cycle.
How do I pay for my HouseShares™?
On The Ownery website simply choose how much you want to save, and authorise us to direct debit funds from your account - we take care of the rest. All funds are held in trust by The Ownery until the HouseShare™ offer is fully funded.
Will I be charged a fee for buying HouseShares™?
Who is eligible to buy HouseShares™?
This product is intended for Kiwis. You'll need to be over 18 years of age and provide the following before making your first HouseShares™ purchase:
- New Zealand proof of identity
- New Zealand bank account
- Your current residential address
Do I have to live in Auckland to buy HouseShares™?
No. Owners can live anywhere in New Zealand. If you live outside New Zealand, you need to confirm that you are eligible to invest under that country's securities laws.
Will all of the properties be in Auckland?
Yes, for the first 12 months, we expect to be buying properties only in Auckland.
What sort of properties?
It makes sense for HouseShare™ Offers to be backed by the kind of houses that owners might buy if they chose to buy their own home. HouseShare™ Companies intend to hold their property long-term, so properties with higher rental yields and lower maintenance costs will also be favoured. Properties will be selected and secured by HouseShare™ Management Ltd.
How do I know which house or houses I should buy into?
Properties are selected by a property expert and detailed information about each HouseShare™ Offer is published on our website. You use this information to choose which house (or houses) you want to save in. As well as helping you step into the housing market earlier, this information also helps you build up your knowhow, so you're better prepared by the time you buy your own home.
Is this type of savings plan operating successfully elsewhere?
Yes, in other markets, there are companies which are successfully buying properties, managing them and offering shared ownership to multiple owners, under similar principles to what we're doing. The laws are different in each country, so each company's structure looks slightly different. The common theme is enabling individuals to invest in real estate without having to buy and manage an entire property themselves.
Will a bank loan be used when buying houses?
No. The money to purchase each house is raised by people like you buying HouseShares™.
Once you're an Owner
How am I better off?
The real advantage is that you're entering the market from day one, and you're saving in the place you want to be. So regardless of whether the market goes up or down, your stake in the housing market remains the same.
Along the way, you may receive HouseShare™ Dividends, which are your share of the proceeds of rental income over and above the costs of managing each house. The HouseShare™ Company Constitution governs when and how its dividends are distributed.
When the time comes for you to buy your own home, and you're ready to sell your HouseShares™, you have the right to request you HouseShares™ to be bought back by the company at the current published valuation.
Who manages the house?
One of the big advantages of being an Owner is that you never need to worry about managing or renting out houses. The HouseShare™ Manager takes care of all this for owners.
Will I need to put more money into the house at any time?
No. HouseShare™ Companies expect all costs to be funded through renting out the property. The risk of most large unexpected costs, such as flood or fire, will be covered through property insurance.
In the unlikely event that an unforeseen cost may arise that isn't insured for, HouseShare™ Companies can borrow (which will be secured against the house), or can issue further HouseShares™ to raise funds if needed.
How do I sell my HouseShares™?
Easy. You have two options:
- You can request the HouseShare™ Company to buy back your HouseShares™ at the current advertised valuation each month after the HouseShare™ Buy-back becomes available. Valuations are re-calculated monthly and are published on your personal Ownery Dashboard.
- You can privately sell your HouseShares™ to anyone you like. The HouseShare™ Company will charge an administration fee to process the transfer of HouseShares™.
What happens if Auckland housing values decrease in any particular year?
HouseShare™ values will move in step with the value of the underlying house owned by the HouseShare™ company, so whether the market goes up or down, your share of that housing market remains the same.
What security do Owners have?
Save in bricks & mortar
Every dollar saved is backed by property that has been carefully vetted by HouseShare™ Management Ltd and chosen by the shareholder.
Spread your ownership
Shareholders can reduce the risks of property ownership by buying HouseShares™ in many different houses, in different locations, at different times in the property market cycle.
You're in control
Each house is ring-fenced
Each offer of HouseShares™ is made by a separate company which is owned and controlled by its shareholders.
Your money is held in trust
Until an offer closes, all money is held in trust in a segregated bank account.
Things to know about tax
Is a HouseShare™ Company liable for tax?
Any taxable profit made by a HouseShare™ Company is subject to corporation tax, which the Company pays directly to Inland Revenue.
Will I be liable for personal tax?
Personal taxation is dependent on individual circumstances, so there's a limit to what advice we can offer. We recommend you seek independent tax advice.
HouseShare™ Dividends are income and will attract personal income tax. The rate of taxation is dependant on personal circumstances, so again, we recommend you seek independent tax advice.
At the time of sale, the difference between the purchase price and the sale price of HouseShares™ is a capital gain. Whether personal tax is payable on capital gains is dependant on personal circumstances, much like owners of shares in publicly listed companies. We recommend that you seek independent tax advice.