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Share it Own it – Group Enabled Purchase plan (SiOi-GEP)

What is it?

(SiOi-GEP) is here to help those that are looking at purchasing property, the ability to get together with their partner, friends or a group of others for a share of ownership equity alongside others.

Who can benefit from this plan?
– New couples buying property together
– Couples buying with the help of parents 
– A group of friends buying a batch or holiday home together
– A group of friends buying an investment property together
– A group of friends buying an asset of value together

Overview

The Group Enabled Purchase plan, developed by SiOi is a standardised method to assist multiple parties purchasing an asset together, typically a home.

Imagine this – a property by the sea, fit for a family to holiday in twice a year. A beautiful view, a large shed to store the boat, and plenty of room for the extended family – the ultimate family holiday home. It’s perfect indeed – but you only use it a fraction of the time. The remainder of the time it sits patiently and waits though – not really an efficient use of capital. So you and your friends decide that you should all purchase this holiday home together – SiOi step in to offer guidance around the shared ownership model that works best for your all, and you’re away.

GEP is a perfect mechanism to assist groups of people to fractionally own real estate. When you don’t think you’re going to use the property all the time, why own 100% of  it? GEP assists by providing a framework and timeline to ensure the purchase of a property goes smoothly. From assisting to purchase criteria, to establishing the level of deposit and ultimately the source of funding required to complete the purchase, SiOi assists the whole way through. Bank funding required? Well, there are considerations here – how to raise funds in a way that minimises the risk of the individual owners is one of many areas that GEP assists with.

Holiday homes, investment properties, commercial buildings – you name it, a GEP plan amongst various parties can assist.

Example of SiOi – Group Enabled Purchase (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.

Example of SiOi – Group Enabled Purchase (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 however they find themselves with significant amounts of surplus funds that either need to be distributed, or retained by the business. 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 leveraged of Share it Own it, experts in developing fractionally owned property.