SHARED HOLIDAY HOME OWNERSHIP MODEL COMES TO AUSTRALIA
Kō, the first co-ownership platform for luxury holiday property in the Asia- Pacific, has launched to the Australian market, offering buyers the opportunity to share ownership of prestigious homes in a range of exotic international locations including Bali and Lombok, Indonesia and Malaysia, with more travel destinations coming to the platform in the coming months.
Founded in 2022 by CEO Ryan Fritsch, CTO John Hanna and Ash Kirvan along with hospitality and development company Selo Group, Kō makes owning a luxury holiday property accessible through sharing the financial costs with up to eight co owners.
While new to the Australian market, shared ownership of luxury vacation homes is gaining popularity in both Europe and North America, where start-ups have transcended from obscurity to “unicorn status” in record timeframes. Pacaso in USA is testimony to this, achieving US$75 million in growth funding at a US$1 billion valuation within its first 12 months of operation in 2021.
Kō operates under an AFSL, being appointed as a corporate authorised representative of Quay Wholesale Fund Services, ensuring owners transparency. Individual privacy is maintained using an innovative online platform with co-owners anonymous to other investors in each property.
Kō offers Australian investors the opportunity to acquire a one-eighth stake in high end holiday properties, effectively making prestige property more accessible.
According to Kō, the post-COVID climate has created the perfect conditions for the co-ownership model to thrive - with hybrid working styles enabling people to work from different locations combined with the rising popularity of the shared economy across asset classes.
“Co-ownership makes the dream of owning a holiday home attainable. With property prices at record highs and inflationary pressures – the co-ownership model provides a viable solution. People want access to holiday homes, but these are only used 10 to 20% of the time – so why tie up all your money in one when you can share ownership?” said Ryan Fritsch, CEO and Co-Founder of Kō .
“Kō also unlocks the potential to own multiple holiday homes for effectively the same cost,” he said.
Through fractional ownership, Kō delivers all the benefits of being a luxury homeowner without the typical maintenance responsibilities. Benefits include up to 42 days a year in their home per unit owned via a dynamic booking system with all maintenance managed by Kō.
Conversely, owners of holiday properties can unlock equity by selling down shares within their home.
It currently has more than seven properties listed for co-ownership on its platform with prices ranging from AUD$150,000 to over AUD$1,000,000 per unit. Kō anticipates having mid double-digit listings by the end of 2022.
The crown jewel amongst the Kō listings is Villa Jamadara, an exclusive five bedroom villa in Bali’s highly-coveted Ungasan Clifftop Resort. Priced at AUD$1,100,000 per unit, co-owners can share ownership of this tropical home perched on the clifftop overlooking the ocean. It features a private infinity pool, generously appointed living spaces opening to manicured lawns, and a 24-hour private butler service.
But according to Kō, it is important to differentiate that co-ownership is not timeshare.
“Kō buyers are equity owners in a property, it is a true co-ownership model rather than a time-share agreement. Co-owners are the equity owners of the properties, having the benefits of traditional homeownership such as how and when they sell their respective share” Fritsch said.
“Kō is there to facilitate a seamless purchase, usage, and resale of each share.”
By contrast, time-share agreements require an upfront annual fee to be paid to use a property during a designated portion of the year.
Kō says there is a robust market in the Asia-Pacific region, where there are some 250,000 holiday homes in Australia alone. It is forecast to experience a rapid growth trajectory and likely to be the largest holiday home region in the world by 2030.
Despite the common dream of owning a holiday home, most existing holiday homeowners are frustrated with their ownership experience, from the costs and complexities of maintaining a holiday home.
Kō offers owners a more flexible booking system, expert property personnel to maintain the property, and platform to facilitate the hassle-free selling of shares. Each owner has complete control over the price their share is listed at, with the entire process facilitated by Kō.
In addition to this, all Kō unit owners have automatic access to THIRDHOME, a global network of properties that allows members to exchange homes for a period of time, with no extra cost.
