Considerations & Guide Notes

Three important facts to consider!

1.

It has become clear for millennials and others that shared ownership will be the only way for them to ever get on the property ladder.

2.

The emergence of the ticX trading exchange represents the most significant development in the property sector since Strata Title was introduced in 1961.

3.

Tenancy in common (TIC) ownership of real estate has been the property investor's most overlooked opportunity!

How is a TIC share created?

A TIC share is created when a property (or part of the property) is sold and is purchased by two or more co-owners as tenants in common in separate equal or unequal shares.

A TIC share is an asset you own
that can be borrowed against.

A TIC share in a property is an asset you own that can be willed (bequeathed), sold, or mortgaged separately. This is enshrined in property law!

General Lender Requirements
when lending to a TIC borrower.

Some lenders have realised that for many people, shared ownership is the only way they can afford to get on the property ladder. These lenders are willing to extend loans to individual co-owners, securing the loan solely against the respective borrower's Tenant in Common (TIC) share.

How many TIC co-owners by property type.

Residential
Holiday Property
Commercial/Industrial
Rural & Commercial Farming

Generally, for residential property (including holiday property), a practical number of TIC co-owners would range from 2 up to 5 or 6. 

For holiday property, sometimes referred to as ‘timeshare with title’, TIC co-owners would either enjoy time in the property or rental income.

Depending on the price of the property, commercial property could have from 2 up to 20 or more TIC co-owners.

The same for rural & large commercial farming properties.

Theoretically, there is no limit to the number of TIC co-owners for any single property. The number of co-owners per property is only limited by the cost of stamp duty and conveyancing in acquiring the share compared to the price paid for the share.

TicX, the 'stock exchange' for TIC shares
in Real Estate