You can buy racehorses and leisure boats this way but fractionisation – or property share as it is known here – is seldom seen in the Australian real estate industry.
This week, the largest property in the smallest suburb in Sydney, Cottage Point (with only 53 residential properties) will be offered as a property share.
PodProperty CEO, Jeremy Levitt, specialises in co-ownership agreements for people that purchase property together as tenants in common. Levitt says the option to buy and sell real estate through co-ownership is a product of the housing affordability crisis and has gained popularity over the last six years with holiday homes now out of reach of the average Australian. Some banks have tailored products to support the method, including the Commonwealth Bank.
The sales method is as unique as the property itself, which has its own nightclub (the owner is a former Australian DJ champion) and is often used for photo shoots and functions (Elizabeth Arden launched a new range there recently). It has been featured on the television programme Grand Designs Australia and was the most popular episode of the series. The Balinese-style property and its owner gathered a following after it aired.
“It’s easily the best house in Cottage Point…set like a fortified castle on the water’s edge…” Grand Designs Australia host Peter Maddison quipped.
Buying a share of a property is an unfamiliar concept in Australia (it’s much more prevalent in the United States and Europe), but the owner of 5 Notting Lane in Cottage Point has done his research.
“I have chosen this method because the market is at an all time low and the top end is getting hammered so I have been researching for the last 12 months to see what else I can do. There are few people who have $6 – 8million to buy a holiday house these days and the strength of the Australian dollar is killing the greenback, so we have no expats investing – which is probably where I would expect the buyer to originate,” the owner Drew Muirhead said.
“We are aiming to sell 12 shares at $650,000 each. The owners will have a deeded share of the title of the bricks and mortar and can use their share for their own holiday stay, or rent out your time for a great return.”
Drew is keeping two shares for his family, ten additional shares will be offered.
At 1300sqm, it’s the biggest block in Cottage Point and has been used as a high-end celebrity holiday rental earning over $300,000 per year.
Australian actress Kim Wilson has stayed at the house. “As an Australian now living in LA, I feel like I have found the perfect piece of Sydney paradise for my trips home,” she said.
The marketing agent, Trent Brewer of Ray White Terrey Hills says the property is close the the city in proximity, only 40 minutes from the CBD, but it feels far further.
“It is situated in the Ku-ring-gai Chase National Park in an untouched parkland, with many Australian native animals in the backyard. Cottage Point,12 minutes via seaplane to the CBD, is a tightly held area with only 10 houses sold in the last 20 years.”
“The area price record is $6.45million three years ago for the only other house of just under 1300sqm.
“Featuring direct beach access to a very private tidal beach with a boat shed and deep water jetty, this unique hideaway offers the ultimate retreat complete with a sparkling infinity edge swimming pool. There are magnificent views from every room of the house.”
If you would like more information on this unique sale, contact Trent Brewer from Ray White on (02) 9451 4511.