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 is co-ownership? +

Co-ownership refers to the direct acquisition of fractional ownership of a property with the entry of the acquirer’s name in the land registry as a co-owner. The properties proposed for acquisition are existing and rented yielding buildings. The co-owners of the property receive quarterly their net rental income, in proportion to their number of shares, and realize a potential capital gain at the sale of the property. Co-owners can put their shares on sale at any time on the Foxstone platform.

How does Foxstone select the properties? +

The selection of the properties is done through a strict analysis in five steps:

  1. The buildings are examined internally by a team of experienced real estate professionals through a series of dynamic financial models and analyses.
  2. Foxstone’s legal partners review the legal aspects (lease agreements, insurance and maintenance contracts, etc.) to eliminate any major legal issues.
  3. Foxstone mandates a certified expert to carry out an independent valuation. This valuation provides an estimate of the building’s value to ensure that the acquisition price is in line with the market value.
  4. A technical analysis is performed by an independent expert to ensure that the building is in good condition and to budget the potential works to be planned over the next 7 years.
  5. A final valuation is carried out by the mortgage provider.

At the end of this process, Foxstone retains only the properties that make up the most attractive investment opportunities , which corresponds to approximately 3% of the properties analyzed. Foxstone focuses on existing and already rented residential buildings which are in excellent condition and which are located in large cities or peripheral areas with high growth potential.

Which official title certifies my investment in co-ownership? +

Once the acquisition of the building is concluded, the name of each investor is entered in the cantonal land register as a co-owner. The entry in the land register guarantees ownership through the existence of a real rights. A copy of this registration can be found on the online dashboard of each investor, who also has the possibility to obtain a certified extract of co-ownership directly from the cantonal land register.

What kind of revenue can I expect from a co-ownership investment? +

Co-owners receive quarterly the net cash flow from the property. It results from the rental income from which operating expenses, investment expenses for the improvement of the property and mortgage-related expenses are deducted. Below is an example of an annual account:

Rental income 
Operating expenses(Water, electricity, maintenance costs, insurance, property management fees)
Mortgage interestRate fixed for 7 years with a banking partner
Property taxVaries according to the canton
Vacancy allowanceSafety margin if an apartment stays empty for several weeks
Foxstone’s management fee (0.05% to 0.25% of the property price)Monitoring of the management, quarterly reports and proposition of a strategy for the building
Net income 
Provision for renovation fund(or guarantee account)Provision to perform the works
AmortizationSince the credit is relatively low, banks do not require an amortization
Distributed income 

At the time of sale of the property or when the investors sell their shares, they shall receive their invested capital in return plus any capital gain resulting for the appreciation of the property. Each investment carries a risk which can strongly impact the yield. Foxstone advises every investor to read the Risk Factors document, which summarizes some of these risks, and to consult a financial expert and a tax advisor for each investment. No guarantee whatsoever is given as for the reimbursement of the capital and the payment of dividends.  

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