FAQs

Unfortunately, Share it, Own – Family Enabled Retirement (SiOi-FER) plan only work when an existing property can be shared. If you are wanting to obtain property, you could use one of our other products: “SiOi – Group Enabled Equity” or “SiOi – First Home Buyer Equity Enabled”. Read more about these products in the SiOi Plans section here.

Yes, you can. To protect all parties there are rules set out in advance to cover this: If the property is owned via company ownership the net proceeds will be distributed as per shareholding. If the property is owned via fixed family trust or tenants in common there may be additional instructions on how the proceeds are distributed.

Ideally SIOI have designed the plans to succeed without using mortgage debt. The company owning the property ideally is set up to be prohibited in taking out mortgage debt, to protect all shareholders. In some instances mortgage debt will be required if there is no other way of funding. In this situation owners are therefore guarantors to the debt, but the purchaser(s) are the only borrower.

If you’ve been advised to own your home in a family trust, then the shares in the property owning company can also be in your family trust.

Share price is determined by applying the annual growth rate for properties in your area and applying this multiple to the original valuation report obtained at time of set-up. Further shares are then o ered to family members via the SIOI portal – no more lawyer involvement, just a share transfer and payment plan is entered into.

Absolutely. If it’s a lump sum you need or a regular income, the SIOI-FER can be the vehicle to facilitate either/or/both.

It varies for each situation, but we find the process normally takes approx 3 – 6 weeks. If you decide to use external law council, this could extend that timeline by 2 – 3 weeks.

Like most things, we first recommend that an open and honest conversation happens between the two parties from the outset, before committing to FER. SIOI has a dispute resolution process that you can go through if you’re not able to resolve things on your own. The result of that might be positive (or negative) and only after that, we then suggest more formal matters happen dispute resolution. When it comes to money, property, inheritance, and wealth we recommend that conversations that are open and honest are the best way to make sure that everyone is happy.

Arranging for a relationship settlement agreement is a must if you have children purchasing shares in your home. Any risk of forced sale must be managed accordingly and whilst there are a few agreements to work through, it’s critical to protect the original home owner.

If you, the parents, are in a position to buy back the shares, then you would be able to assist them out of ownership or in some cases you may be eligible to seek funding from a bank to raise funds to do this. Ideally FER works best if the goals and objectives are adhered to but often life just happens and worst case, the property would have to be sold.

You are. Nothing changes in relation to all expenses including (but not limited to) rates, insurance and maintenance. In the company constitution you’ll notice some limitations of 30% – this means that providing there is no more than 30% of the property sold, all expenses fall on the original home owner.