Is co-ownership of a prime London property worth your time & money? Let’s make our case and you decide the verdict!
London is always a good idea. But is co-ownership in London a good idea as well?
Flyway has secured some stunning London properties, which you can get at 1/12 of their original price. We know you have lots of questions. How did we achieve this? What’s the catch? Is this worth your time & money? Let’s make our case and you decide the verdict!
But first things first – what is even co-ownership? You might have also heard of ‘fractional ownership’ which is identical.
Co-ownership simply means having a percentage ownership in a real estate asset.
The term ownership is to be highlighted here. It is not a timeshare (you don’t buy time, you buy an asset). And it’s not to be confused with ‘shared ownership’ (a UK scheme facilitating first-time buyers with a flexible mortgage plus rent arrangement.) Co-owning a portion of a second home means you have the property rights to it — you can use it for your enjoyment and just like any other asset, sell it when you want.
Let’s take the example of a downtown 1-bed London property, on the market for £1.2mil. Let’s assume the property is split into 12 shares, each worth £100k. What does this £100k buy you? Two things:
1. 30 days of rights of use. So, a whole month of use of a truly prime, downtown London flat, which you can split as you wish in various stays along the year.
2. A long-term investment opportunity in the London housing market.
Does any of the two sound of interest? If yes, go on reading.
One could refer to second home co-ownership as an investment that you can also physically enjoy. Or seen from a different perspective, as a holiday you have the option of turning into a long-term investment.
With Flyway’s London launch, the latest trend in proptech has just hit the ground in the buzzing UK capital. Here is why we think it changes the status quo:
London real estate has been long targeted as a second home option by affluent overseas residents. Persistent demand by foreign buyers in combination with local housing market dynamics have pushed house prices upwards in recent years, registering triple-digit growth figures. The result? To put it bluntly, you needed more than a pile of cash to break into London's prime property.
For many, it must have felt like buying into a London second home is a ship that sailed. Not anymore.
With Flyway, your hard-earned capital can actually buy you a share of an upscale property, in a prime London location. As it ought to be. We make it possible for you with our innovative co-ownership model.
Not only do we give you access to a market you might have been previously crowded out from, but we do so at a reasonable price. London hasn’t become more affordable, but we engineered a change to make it feel so. By converting a property into an LTD (Limited Company) and splitting the total cost into distinct shares, you can now access the same coveted property, but at a much lower entry point.
‘Breaking down’ the asset into smaller chunks allows us to offer a buying opportunity fit specifically for you, for your budget and personal preferences.
If you buy into one of Flyway’s London properties, you invest only the amount you are willing and able to spare right now for your second home.
What’s the point of knowing on paper that a London second home is a potentially high-yielding move if you can’t act upon it? Flyway makes this opportunity viable again and empowers you to break into the London market, at a price point that makes you feel comfortable.
Sounds like a paradox but it is possible with Flyway’s co-ownership model. Let’s start by looking at what £100k can buy you in London? Not to be pessimists, but sadly almost nothing. Even in the unlikely scenario, that it could get you a property, you would have to make serious compromises, on quality and/or location. By that time, you would be probably putting more of a burden than a pillar of enjoyment in your life.
Jumping onboard the Flyway model automatically means you can enjoy upscale properties, fitted with the latest smart features, in newly built developments, whose price point would previously be prohibitive.
With Flyway, the stunning property you thought was unattainable or simply too much of a commitment is now at hand’s reach.
With Flyway, you could pick shares in more than one London property whose potential you believe in. In that way, instead of locking your disposable capital into one entire second home, you could spread it into the right amount of shares for you, in various properties. For instance, you might choose to get a 1/12 in a 2-bed luxury building facing Hyde Park, next to Notting Hill, or 2/12 in a flat by luxurious Mayfair. It is your choice.
And don’t forget you can ultimately sell your shares in one property when the time is right and get more shares in another. It’s entirely up to you.
It is no news that London is one of the most expensive cities to rent globally. In fact, it is the 4th most expensive city, behind only Hong Kong, New York, and Singapore. For a central London 3-bedroom apartment, a monthly rental ranges in the thousands mark, and that is per week. If you visit London with exceptional regularity, a whole apartment might make sense.
What if you visit London often, but not often enough to justify an expensive rental? Especially one that would sit unoccupied for the biggest part of the year. It’s like a leaking tap of cash. With Flyway, you can accumulate the capital you would otherwise waste on rentals and turn it into an investment.
The same goes for short-term rentals. Think how much you would give for the short-term rental or hotel of your desired quality – £300, £400, £500, or more per night? Instead of dumping this money into someone else’s account every time you visit London, you could be building towards your own wealth, all the while enjoying the luxury of a 5* hotel. The big difference, if you join Flyway, is that this will be your own luxury home.
Premium quality comes at a cost. A luxury property in central London not only comes at a high price tag but a bunch of recurring expenses; cleaning, repairs, maintenance, and upgrades to name a few. This is the hassle and cost of homeownership everywhere, you might say. But what if that cost could be minimized?
At Flyway, we help you keep the bar high while keeping costs low. Being a Flyway co-owner means you will share all common expenses of the property with other co-owners. Additionally, for some expenses like cleaning, you only have to chip in according to your actual use of the home.
Tedious bill handling is totally taken out of your hands and managed by Flyway, who acts as your property manager. We then make sure all bills are shared fairly and all necessary housework is timely executed by us. Nothing to worry about, nothing to plan, nothing to oversee. We’ll handle everything and give you full transparency through the Flyway App. This is where you book your stays but also where you easily access all info about your second home, without getting lost in the nitty-gritty details.
Even if you are convinced that entering the London second home housing market is a good idea, you might be daunted by the sheer amount of bureaucratic processes to close a real estate transaction. Not to mention the inherent worry and ‘time-thief’ activity of house hunting for the right property that meets your expectations.
On top of this, if you are a non-UK resident, you might feel conscious about who is a trusted partner on the ground in London, who will protect your interests and act on your behalf while you are away. This gap is now closed with Flyway.
We believe that second homes should be accessible, at realistic prices. Beyond making it affordable, we knew we also had to make the process simple and straightforward. Once you decide to become a Flyway owner, there will be nothing to worry about except for the excitement of picking the right listing and the right amount of ownership for you.
Flyway will be behind the scenes all along the way, absorbing the hassle and giving you the space to enjoy the process of picking your London second home. This means we are by your side from the very beginning (giving you a tour of the property virtually or in person, dealing with all paperwork, informing you about tax implications, etc) up to the very moment you will get the code to access your new second home.
Second-home co-ownership might or might not be right for you. But it’s definitely a route worth exploring. When you make the assessment, take into account the above parameters. To recap:
Do you currently have access to the London real estate market with your budget?
At what price point would you be comfortable getting a second home?
Are you opting for a high-end property and quality is key to you? How can you achieve this without breaking the bank?
Do you care about diversifying your real estate portfolio?
Do you see rentals and/or hotels as a waste of money?
How concerned are you about the burden of entire homeownership expenses?
Is it your first time buying a London property or are you a foreigner? How will you streamline the process?
If the answer to any of the above is yes, Flyway is your fastest path to second home ownership, at a fraction of the cost.
So, would you come along? Check the Flyways with available shares. Have second thoughts?
We wanna get them out of the way so that we can focus on getting you your second home. So, if this piece fired any questions, shoot us a message below or book a call with a member of our London team.
Send us your questions, comments or simply declare your interest to buy shares. A member of our team will reach out to arrange a call