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Co-ownership

Co-ownership consists of gathering investors to enable them to acquire together an existing and already rented yield building.

How it works

Rigorous property selection

Our investment team searches for attractive income-generating properties throughout Switzerland. Each property is carefully vetted by conducting a meticulous due diligence process, backed by independent legal, financial, and technical expertise.

Our strict selection criteria include:

Location with high rental demand
Acquisition at fair market value
Rental property with good income prospects
Projectable renovation requirements

We provide you with the analysis and insights needed to confidently make informed investment decisions.

Seamless acquisition process

Once a property meets our rigorous standards, Foxstone handles all administrative tasks, including mortgage negotiation at the best terms, notary procedures, and coordination with co-owners to complete the acquisition of the rental property.

As an investor, you purchase a fraction of a building which is registered in your name in the land registry.

Simplified property management

The day-to-day management is delegated to a trusted property manager, handling rent collection, maintenance, and tenant management.

As the asset manager and co-ownership administrator, Foxstone ensures your investment is managed efficiently and takes strategic decisions to optimize the value of your rental property. Co-owners can vote during an annual online general assembly.

Consistent Income Distribution

Receive quarterly net rental income directly to your bank account, with all expenses already deducted (building costs, mortgage interest, property management, insurance).

A detailed financial report provides you with full details of your property's income and expenses. You can track your investment’s performance anytime on your online dashboard. You only have to take care to fill your tax return with information that Foxstone is providing you.

How to become a co-owner of a rental property?

Request the investment documentation

Select an income-generating property that meets your investment criteria by looking at a complete data room which includes:

Detailed description of the property
Analysis from our investment team
Full financial plan
Independant valuation
Technical due diligence

Fill the documentation

Complete and sign the following documents:

The subscription form
Power of attorney to purchase the property
The accreditation form for the mortgage provider (KYC)

Book a digital meeting with the notary
Send us back the signed documents

Documents validation

Foxstone takes care of all the formalities with the mortgage provider, from the negotiation of the mortgage to the validation of your credit application..

On average, 40% of each property is financed by the co-owners' equity and 60% by a mortgage. For example, with an investment of CHF 50,000 (40%), you hold a building fraction of CHF 125,000 (100%).

Each co-owner therefore holds part of the mortgage, and the special feature of our model is that the mortgage debt is divided between the individual co-owners.

Become a proud Co-owner

Transfer the funds to the escrow account of the notary in charge of the transaction. Once we have collected all the funds, we proceed with the acquisition of the property on your behalf in front of the notary.

Congratulations! You are now the co-owner of a property with your name listed in the land register. You will receive your first quarterly payment at the end of the first full quarter.

People are saying

A year ago, I came across an article in the Tribune de Genève, which presented the concept and advantages of real estate crowdfunding and mentioned Foxstone. I found it very interesting, so I contacted Foxstone directly for more information.

Valérie Schulz

Teacher

Co-owner in Bernex, Geneva

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FAQs

What are the documents required to complete an investment?

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Each investor expressing an interest in an offer receives the investment file including:

The investment brochure,
The brokerage and management mandate,
The co-ownership agreement,
The mortgage contract,
The deed of sale.

And must fill, sign and return the following documents:

The subscription form,
The power of attorney form in two copies,
The accreditation with the mortgage provider (information on the investor and the origin of the funds),
The document for the notary.

These documents are required by the mortgage provider and the notary.

Can I live in one of the apartments of the co-ownership?

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No, crowdinvesting does not give access to the individual use of the property, unlike the PPE condominium. Co-owners invest in order to collect returns and not for the purpose of living on the property.

Can I visit the property before proceeding with my investment?

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No, for obvious logistical reasons we usually do not organize private tours of the buildings before buying them. However, you have access to the photos as well as the technical and structural details of the property, summarized in the prospectus of each investment proposal.

What are the differences between crowdinvesting in co-ownership and PPE condominium?

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PPE condominium usually consists in the purchase of an apartment. It gives the owner the right to use this apartment either to live in it or to rent it (and generate returns). A crowdinvestment in co-ownership consists in the purchase of a part of a building; each co-owner holds a fraction of the entire building. The goal is to earn a return and not to live in it. As a real estate investment, crowdinvesting in co-ownership has the following advantages over PPE condominium:

The required investment is lower In Switzerland, to buy an apartment of 80 m2 it takes on average an equity contribution of CHF 150,000. Whereas the minimum amount of a crowdinvestment with Foxstone is CHF 25,000.
The rental risk is lower In the case of a purchase of an individual apartment for the purpose of renting it, the owner bears the entire rental risk. While owning a part of a building composed of several apartments (as in the case of crowdinvesting) dilutes the rental risk in the case of the departure of a tenant.
The interests of the co-owners are aligned In the case of a PPE condominium, some co-owners occupy the apartments and others rent them to generate a return. During the votes of the assemblee of co-owners, this situation may lead to divergent interests as to the expenses to be incurred in the common areas. In the case of crowdinvesting, all co-owners share the same goal: to generate a return, which facilitates the decision-making.
The property management is taken in charge by real estate professionals In the case of a crowdinvestment in co-ownership, the management of the building is delegated to a property manager which is responsible for the collection of the rents and the maintenance of the building. Foxstone acts as the administrator of the co-ownership and takes the strategic decisions for the enhancement of the building. The co-owners can participate in the major decisions regarding the management of the building at the annual general assembly held digitally.

What happens to the renovation fund when I sell my shares?

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The renovation fund consisting solely of cash, is owned by the co-owners. Therefore, the share of each investor in the renovation fund is calculated pro rata of his or her share of co-ownership. In the event of a sale of a share of co-ownership, the shares of the renovation fund belonging to the out-going co-owner increases the selling price.

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