Author: Michelle Stapleton
Published: 21 March 2023
Pages: 18

Introduction

Co-ownership
Many first home buyers in New Zealand are finding it impossible to get on to the property ladder. Even with the current uncertainty in the housing markets and a cooling of the prices, house prices in New Zealand are some of the highest in the world. The median house price in New Zealand (at $820,000) is more than ten times the median household’s disposable income. And of course it is worse in Auckland.

So shared-ownership schemes are becoming increasingly common. As practitioners, we need to keep ahead of the different options out there for clients to be able to advise on the various pitfalls and issues.

How does shared ownership work?
Co-ownership can be a practical tool to get on the property ladder. Co-ownership means buying the percentage of a property that the client can afford now, with a potentially silent partner (for example Kāinga Ora) providing the balance. Together the property is “co-owned” and almost always the property will be owned as tenants in common in unequal shares. (continued...)
 

Content outline

• Changes under the unit titles act: ramifications of the unit titles (strengthening body corporate governance and other matters) act 2022
• Tax changes in the build-to-rent sector
• Bright-line
• Recent complaints regarding practitioners in residential conveyancing