Co-ownership

Co-ownership consists of gathering investors to enable them to acquire together an existing and already rented yield building.

How it works

An easy acquisition

An easy acquisition

Foxstone’s real estate team travels throughout Western Switzerland to find residential properties. Thanks to a large network of property managers, brokers and strategic partners, we identify investment opportunities that are not easily accessible to individual investors.

Our rigorous selection criteria:

  • Attractive location with a high rental demand
  • Acquisition price matching a market value
  • Building not requiring major rehabilitation works
  • Property with a track record of stable returns
A simplified management

A simplified management

The day-to-day management of the property is delegated to a renowned property manager who is responsible for the collection of the rents and the maintenance of the property. Foxstone remains administrator of the co-ownership and operates as asset manager.

As a co-owner, you have the possibility to participate in the major management decisions at an annual general assembly held digitally. No need to travel, everything is done online.

A steady income

A steady income

You receive your revenues quarterly on your bank account along with a management report that provides you all the details about the income and expenses of your property.

You receive a net income from which all the expenses have already been deducted (operating expenses, mortgage interests, property management, insurance, etc.), you only have to pay the taxes.

Monitor the performance of your investment on your online dashboard.

An organized resale

An organized resale

You can put all or part of your co-ownership shares on sale with a potential capital gain at any time. Foxstone takes care of finding a buyer who acquires your shares and takes your place in the existing co-ownership without penalty or fees.

How to become a co-owner

1

Get the brochure

Choose an offering that fits your investment criteria and ask for the full documentation of the property you are interested in, including the brochure and:
  • The co-ownership agreement
  • The brokerage and management mandate
  • The deed of sale
  • The mortgage contract
2

Fill the documents

  • The subscription form
  • The power of attorney for the acquisition of the property
  • The accreditation form for the mortgage provider (KYC)
  • The information sheet for the notary
3

Get an accreditation

Foxstone takes care of all the formalities with the mortgage provider, from the negotiation of the mortgage to the validation of your credit application.

Each property is financed on average by 40% equity and 60% mortgage.

For example, for an investment of CHF 50,000 (40%), you hold a mortgage of CHF 75,000 (60%).

Therefore, each co-owner holds a part of the mortgage, and the specificity of our model is that the debt is uncoupled between each co-owner. This means that the liability of each investor is limited in proportion to his investment.

4

Finalize your investments

Transfer the funds to the escrow account of the notary in charge of the transaction. Once we have collected all the funds, we proceed to the acquisition of the property on your behalf in front of the notary.

Congratulations! You are now the co-owner of a property with your name listed in the land register.

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FAQs

What are the documents required to complete an investment?

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Each investor expressing an interest in an offer receives the investment file including:

  • The investment brochure,
  • The brokerage and management mandate,
  • The co-ownership agreement,
  • The mortgage contract,
  • The deed of sale.

And must fill, sign and return the following documents:

  • The subscription form,
  • The power of attorney form in two copies,
  • The accreditation with the mortgage provider (information on the investor and the origin of the funds),
  • The document for the notary.

These documents are required by the mortgage provider and the notary.

Can I live in one of the apartments of the co-ownership?

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No, crowdinvesting does not give access to the individual use of the property, unlike the PPE condominium. Co-owners invest in order to collect returns and not for the purpose of living on the property.

Can I visit the property before proceeding with my investment?

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No, for obvious logistical reasons we usually do not organize private tours of the buildings before buying them. However, you have access to the photos as well as the technical and structural details of the property, summarized in the prospectus of each investment proposal.

What are the differences between crowdinvesting in co-ownership and PPE condominium?

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PPE condominium usually consists in the purchase of an apartment. It gives the owner the right to use this apartment either to live in it or to rent it (and generate returns). A crowdinvestment in co-ownership consists in the purchase of a part of a building; each co-owner holds a fraction of the entire building. The goal is to earn a return and not to live in it. As a real estate investment, crowdinvesting in co-ownership has the following advantages over PPE condominium:

  • The required investment is lower In Switzerland, to buy an apartment of 80 m2 it takes on average an equity contribution of CHF 150,000. Whereas the minimum amount of a crowdinvestment with Foxstone is CHF 25,000.
  • The rental risk is lower In the case of a purchase of an individual apartment for the purpose of renting it, the owner bears the entire rental risk. While owning a part of a building composed of several apartments (as in the case of crowdinvesting) dilutes the rental risk in the case of the departure of a tenant.
  • The interests of the co-owners are aligned In the case of a PPE condominium, some co-owners occupy the apartments and others rent them to generate a return. During the votes of the assemblee of co-owners, this situation may lead to divergent interests as to the expenses to be incurred in the common areas. In the case of crowdinvesting, all co-owners share the same goal: to generate a return, which facilitates the decision-making.
  • The property management is taken in charge by real estate professionals In the case of a crowdinvestment in co-ownership, the management of the building is delegated to a property manager which is responsible for the collection of the rents and the maintenance of the building. Foxstone acts as the administrator of the co-ownership and takes the strategic decisions for the enhancement of the building. The co-owners can participate in the major decisions regarding the management of the building at the annual general assembly held digitally.

What happens to the renovation fund when I sell my shares?

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The renovation fund consisting solely of cash, is owned by the co-owners. Therefore, the share of each investor in the renovation fund is calculated pro rata of his or her share of co-ownership. In the event of a sale of a share of co-ownership, the shares of the renovation fund belonging to the out-going co-owner increases the selling price.

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