Real Estate Investor Magazine South Africa November 2019 | Page 38

ACQUIRING
Property co-ownership
& fixer-uppers
How to invest in real estate
when times are tough
Co-ownership is a great way for multiple people to invest in property,
with the intention of “flipping it” or selling it and sharing the profit. It is
becoming increasingly common in South Africa.
C
helsea Viljoen of Just Property says “Due to the eco-
nomic climate, it can be challenging to enter the mar-
ket, especially as a first-time buyer. As a result, more
people are choosing to purchase property with a friend,
family member or even a colleague.”
Viljoen specialises in the City Bowl area of Cape Town and
has found that Woodstock, Observatory and Salt River offer
many such opportunities. “Fixer-uppers, distressed sales
and properties that go on auction are popular amongst the
investors looking to flip properties. Often savvy investors also
approach sellers who have had their properties on the market
for many months in the hopes of getting a bargain.”
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NOVEMBER/DECEMBER 2019 SA Real Estate Investor Magazine
Like all property buyers, co-owners have the option of
taking out a bond on the property or paying cash. Shares in the
property can be split according to each party’s contribution –
one party may take 40% ownership and the other 60% of the
single property. Such share arrangements can be recorded and
registered on the title deeds by the Deeds Office.
“It is very important to agree and stipulate the share-
holdings of each owner before acquiring the property,” says
Viljoen. “Failure to stipulate the share-holdings will result in the
legal presumption that the co-owners acquired the property in
equal shares (50%/50%).”