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Sharing is Caring

01.10.21

Prop-tech startup, Novyy, has announced the launch of Novyy Co-Buy, with more than 100 properties available across Europe. The firm has initially launched its service for luxury holiday homes in Cyprus, Greece, Portugal and Spain, as well as in the UK.

In stark contrast to the timeshare model, Novyy Co-Buy takes the concept of shared ownership and elevates it to the next level. Buyers purchase a share of the freehold of one or more second homes, buying them in one tenth shares. They become the legal owners of an asset that can be sold in future, should they wish.

Ashish Saraff, Founder and CEO of Novyy, explains: “Luxury holiday homes are expensive to own and to maintain. And we don’t use them year-round. Novyy Co-Buy solves both these problems by enabling families to co-buy into their dream second home along with other like-minded families. Co-buying enables efficient use of capital and space in the second home market.”

Novyy Co-Buy makes owning a luxury second home more affordable and more usable. The company has designed its service to enable seamless co-ownership of premium holiday homes for up to ten families. Novyy Co-Buy oversees the upkeep, management and fair use of the property, all of which can be managed with a few clicks in the soon-to-be-released buyers’ app.

Unlike timeshare models, which provide only a right to use the property and a depreciating investment as the years pass, Novyy Co-Buy provides buyers with a share of the freehold for life, allowing significant value appreciation over the years to come. Families can buy between 10% and 50% of a luxury property, which gives them five to 25 weeks a year of usage rights and proportionate ownership in the property. Each property is held in a UK limited company, limited by shares owned by the co-buyers. Novyy manages the company’s legal and accounting compliances.

Ashish continues: “Luxury villas with three or more bedrooms, a swimming pool, garden, breathtaking views and other desirable features for your family’s delight are priced in seven figures at the least. Now, more of us can own these stunning properties for the fraction of the price. Novyy Co-Buy will put more families on the holiday home ladder and reduce pressure on local property markets in holiday destinations. At the same time, it will upgrade holidaymakers’ experience from a studio or one-bed apartment in a resort to a private luxury villa all to themselves.”

Families can invest in multiple properties with Novyy Co-Buy. Each co-buyer becomes an equity owner in a UK limited company that solely owns the property. Each company is divided into 20 shares, each representing 5% of the company. A co-buyer can buy a minimum of two and a maximum of ten shares. Accordingly, each co-buyer has full title over the property to the extent of the shares held. The buying process will be completely digital with very little manual intervention for statutory paperwork.

 

With the platform curating properties priced between £500,000 to £5 million, investment ranges from £100,000 to £1 million. Ongoing costs are payable in proportion to the share of the property held, starting from around £2,500 per year. They cover utilities, taxes, property management, housekeeping and everything else required to maintain and operate the property. Charges are proportional, so a co-buyer who owned 10% of the property would pay 10% of the maintenance, management and utilities costs.

Novyy Co-Buy’s properties are ultra-luxurious, such as this £3 million villa in Cyprus, with private pool and beautiful sea views.

Ashish concludes: “Families love to own a place in the sun but use it for just a handful of weeks each year. Owning a full property for this purpose is a poor use of capital and space. Instead, co-buyers can now own 1/10th (or more) of one property each across 4 different countries. The provides five (or more) weeks a year in each of the four locations. That’s good use of capital.”

In contrast to the dreaded timeshare lock-in, co-buyers commit for a period of just three years, after which the shares are freely transferrable to anyone. The co-buyer can sell their share to friends or family or post it back on Novyy Co-Buy for resale.

The initial cost for buyers includes a proportion of the gross purchase price of the property, including all local property taxes and associated fees. In addition, Novyy Co-Buy charges a lumpsum transaction fee for the due diligence, identification of opportunity, aggregating co-buyers, transaction management, legal and compliance, closing and so forth.

With many families keen to own overseas but facing the new economic realities of the pandemic, Novyy Co-Buy provides an interesting new option for those looking for luxury second homes.

https://cobuy.novyy.com/

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