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Co-investment Q&A

Below are some commonly asked questions regarding home co-ownership using an AIS purchase and finance model, where AIS partner with you in a new home investment strategy:


Who handles everything?

Australian Investment Services (AIS), a fully Licenced Real Estate Agent & Auctioneer company in both VIC and NSW, are partnered with Australian Business Services (ABS), Chartered Accountants & Business Advisors established in 1986.


Can I build anywhere?

Yes.  A specific design and build can be done on the land you have chosen.


Do you have standard build designs?



Can I alter the plans?



Where is the land?

You will choose the land within your budget, and we can work with you to offer some options from our wide database of contacts and existing or upcoming land releases using key relationships we have with other parties in the subdivision process.


Do I own the property?

You are co-owners and are listed on title.


Will I ever own the property myself?

Yes.  At some point, you can be refinanced and have the whole title transferred to your own name including the transfer of equity held by AIS from inception.


When can I sell the property?

At any time you decide.  AIS will have 1st right of refusal to acquire the co-owners equity interest, and vice versa applies should you like to exit the partnership owner arrangement.


How long will it take to have my own title?

Commonly, we would expect this to be anywhere from 1 to 5 years, or longer depending on your individual circumstances.


Who arranges all of the paperwork, finance, land acquisition and the actual build?

We do.  AIS will handle all of the paperwork and keep you informed along the way of important milestones over the duration to obtaining the final certificate of occupancy from the relevant local authority.


What are the stages?

  1. Send back income details and perform a credit check on yourself.  The more information you supply, the better the merits of the application to prospective lenders, as well as our client criteria
  2. The lenders will assess and work out what you can afford to purchase
  3. Select land
  4. Choose preferred design
  5. Valuation on house & land
  6. Settlement of land purchase
  7. Build home (standard build time 16-20 weeks)
  8. Move in straight away
  9. Sell property
  10. Split resulting profit less all expenses


How much deposit do I need?

Whatever your budget can afford, every application is different.


Who owns the property?

We both own the home and are on title, with a corresponding share agreed from the outset, or as adjusted in subsequent negotiations where you wish to alter your level of investment, by agreement with AIS.


How do I sell the home?

By public auction, privately, or assignment of your share in the property to another party.


Who maintains the home?

You maintain the home at all times, including all repairs and maintenance.


How does it work in practice?

2 separate loans

One loan is held with the 1st mortgage lender, normally 60-80% of the total value

An additional loan held as 2nd mortgage with a private lender for the balance, normally 20-40%


Profit distribution

Share of profit is calculated as follows:  each build and resulting tax payable is specific to you and your individual circumstances ie. first home buyers may be tax-free on some items of initial outlays and this benefit will form part of your own deposit calculation.  Similarly, there may be up to nil tax payable on any resulting capital gain on your portion of sales proceeds, as its your principal residence.


Do you pay any referral commissions?

Yes.  We are happy to pay a referral commission where you successfully introduce a new client to AIS.


Can I use the AIS co-ownership strategy for other types of property purchases?

Yes.  The AIS co-purchase strategy is available for a holiday house or investment property.  Please make enquiries of your specific needs and we will consider tailoring a solution to your individual needs.



All documentation prepared has been legally checked by the respective party’s.



We both share the risk proportional to our legitimate ownership share shown on title.


What happens if I get into trouble repaying the loans?

Speak to us first and together we will come up with the best options available, including an adjustment to the equity you hold in severe circumstances.  Interest and any costs on overdue amounts by either party represent a diminution of that party’s share in any resulting distribution of equity on sale.


Can I renovate the home later?

Yes.  Just obtain a written approval from AIS first.  You will need to ensure a clear plan, budget and requisite approvals of local planning authorities to ensure full compliance with relevant laws and regulations prevailing.


Who are the builders?

These are individually chosen by AIS to suit the location and type of build.


Who pays for out-of-pocket expenses?

Funding will pay for all expenses of the acquisition of land and build process to stage of completion.


Should I wait until I have saved a deposit?

Saving for a deposit could take years to achieve.  With the AIS co-ownership model, you can move in and take advantage of the potential for increased property value and the lifestyle freedoms this strategy provides, much earlier than a normal savings timeline for a full house deposit.


Can I do this with family and friends?

Yes.  It all helps and can offer further benefits of spreading investment risks.


Should I obtain legal advice?

Yes.  AIS will be pleased to go through the process with them so that you are fully apprised of the detail.


Haven’t found the query and answer you’re looking for? Reach out directly through our Contact Us page.