Examples

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Share it, Own it – Group Enabled Purchase (SIOI-GEP)

Case Study – a holiday home:

John, Jane, Kathy and Amanda agree to purchase a holiday home. Each couple owns their own home and is at an age and stage where they want to (and they can) take a few holidays throughout the year. They each plan on spending a couple of months a year in the property and the remainder of the time they’ll make the property available to rent or to extended family to use.

GEP assists by providing a fair and equitable template that can be modified using the expertise of an SiOi adviser. Documents (like a property sharing agreement) are prepared and forwarded to their independent solicitors for review.

Meanwhile, the SiOi adviser works with each couple to arrange funding at their own banks, which ultimately go towards the purchase of the new home. Using the GEP framework, each couple can access their ownership portal to manage bookings, deal with maintenance concerns as they arise, and refer to the rules of ownership anytime.

Case Study – an investment property:

Dan and Dale are business partners who’ve been working together for 15 years. They each have their own families, children, and they own their own home. Due to the success of their business they find themselves with significant amounts of surplus funds that either need to be retained by the business or distributed. Dan and Dale decide to purchase a commercial building, so they can move their growing business into a building that will ultimately benefit them after the business is wound down (or sold).

A GEP plan is suggested to them by their SiOi accredited adviser as a way to formalize the ownership intentions (this includes the purpose and the key performance indicators that they’d like to use to determine whether or not they wish to sell it in the future). The specific Group Enabled Purchase plan that’s ultimately developed for Dan and Dale is unique, as their adviser helps input all the key variables required. Documents are generated via SiOi and sent directly to the clients solicitor for review. Meanwhile the adviser then works with them to determine the best way to source funding from a bank to complete the purchase.

By using GEP, Dan and Dale saved thousands with their solicitor who didn’t need to reinvent the wheel – instead, they used Share it Own it, experts to help them create a great foundation for fractionally owned property.

Share it, Own it – Family Enabled First Home (SIOI-FEFH)

Case Study – help from mum and dad:

Derek and Amy bought their first home two years ago. Saving madly for 2 years they were able to come up with $40k to use towards the purchase. Due to a fast paced market and changing regulation, the minimum amount of deposit they needed was 20%, and their house they wanted cost $1.2m! At their rate of saving of $500 per fortnight, they weren’t saving at a rate that was any faster than the growth in value of the property they were chasing. Amy’s mum and dad were keen to assist, but they just weren’t sure how. They didn’t want to ‘lock up’ all the equity in their home as they had to allow for their other son Josh to purchase something in the next 5 years also.

Share it Own it had the solution: Family Enabled First Home. Amy’s parents did not have savings but luckily they owned their own home and were almost debt free. By arranging funding with Amy’s parents’ bank of the remaining deposit required only, SiOi was able to limit the exposure of her parents to the deposit, not the loan that Derek and Amy needed. Now, armed with the 20% deposit required, SiOi arranged funding with their preferred bank for the remaining 80% of the purchase price. $40k savings was spent renovating the property to make it fit for purpose and the rest is history!

Share it, Own it – Family Enabled Retirement (SIOI-FER)

Case Study – help from the children:

Lisa, Jono and Dave (siblings), have parents, Jill and Pete. The parents worked hard raising three kids and sacrificed a lot for their children, especially when they were young and they wanted to spending time with them in the early years. The three kids love their parents and would love to be able to give back in some way. The parents need help as unfortunately they haven’t managed to put away enough of their resources during their working lives, to cater well for their needs in retirement. In fact they are both 67 years old and wanting to finish work next year but they still have a mortgage! How do they release themselves from their mortgage so they can enjoy the golden years without a huge debt to worry about. The kids hatch a plan, get in touch with SiOi, and here’s what happened…

The Family Enabled Retirement (FER) plan was put into place. This requires a portion of the parents house to be sold to the kids so the parents could repay their mortgage. In return each of the kids who put in get a share of equity.

Parents, Jill and Pete are more than happy with the plan and sell a portion of their home to their kids. They look at it as the kids are going to inherit it one day regardless so why not make that now and not in the future.

– Lisa has $75k savings / Jono has $30k savings / Dave has $5k.
– The parents’ home is worth $1m and they have a mortgage of $100k.
– The number of shares ended up being: 75,000 shares to Lisa / 30,000 shares to Jono / 5,000 shares to Dave / 890,000 shares to Jill and Pete.
– The funds from the children was used to pay off the $100k mortgage and associated costs.

Where to from here for Jill and Pete?
6 years later Pete may need some funds to pay for knee surgery. Lisa has been keen to purchase more and she can raise funds off her own home and purchase more in the future – so, another tranche of shares are transferred. A little later on Jill and Pete agree to sell more shares to fund another operation and take a worldwide cruise. Luckily they can manage to hang on to the property as it’s in a good area – the capital gains are now funding their lifestyle and they haven’t had to move house!

The kids are winning also – Two of the three kids don’t actually own any other property apart from their parents home. Their portion of shares in the family home have now increased at a rate which is faster than savings in a bank too.

So, a little help from the kids and SiOi, and everyone’s winning!