Got questions?

Here's some answers

Find out how Levridge can help you buy your first home. There’s no price caps, income brackets, or mandatory new developments and locations to hold you back.

Buying FAQs

1. How much money do I need?

You will need around $3,000-$4,000. This covers fees like the building report, registered valuation, whether tightness report, LIM and legal fees.

2. Can I use my KiwiSaver?

Absolutely! If you have money in KiwiSaver you can apply to withdraw and use this money to reduce your mortgage.

3. What if I want to sell the property?

5 years is the minimum period of time for this Co-Ownership. After that, the Co-Ownership carries on indefinitely, until either you or your property investor wants to sell.

4. Can I buy out my PROPERTY investor?

Yes. 5 years is the minimum period of time for Co-Ownership. So after that, you can buy out your property investor. On the flip side, at any time after 5 years your property investor also has the right to sell. You have first option to buy out your property investor, but if you're unable to or don't want to, then the property would be sold and you and your property investor would go your separate ways.

5. What if I want to exit the partnership before 5 years?

If you’re not confident that you’re able to stay in the property for at least 5 years, then you should not go ahead with buying a property under this model. But we do understand that the unexpected happens. 

The first thing you should do is contact us.

We’ll see if your property investor is willing to sell early. If they are willing, then you can sell your property or buy out their share. However, they are under no obligation to agree to this.

Failing that, we can see if there are any buyers willing to take over your property and Co-Ownership Agreement. However there are no guarantees.

If neither of those options work out, you will need to stay in the property for the full 5 years.

6. What if my PROPERTY investor wants to sell early?

Your property investor is committed to this property for a minimum 5 year period. To break this, they must have your permission.

However, if their circumstances change they will contact us and we will let you know what your options are. 

We can search for a new property investor, you can choose to sell the property or buy out your property investor, or you can keep the agreement as it is. It’s up to you.

7. How long am I tied in with my PROPERTY investor?

5 years. After that, either of you can choose to sell the property or you can choose to buy out your property investor.

8. Who owns the property?

The title of the property will be in your name and so will the mortgage. There will be a side agreement which notes that your property investor has interests in the property with beneficial value.

9. How is the value of the property determined if I want to sell?

If both you and your property investor are unable to agree on the current market value, then you’ll need an independent registered valuation.

If you don’t agree on an independent registered valuer, then you can both get your own registered valuation from an independent registered valuer. The property’s value will be the average of the two valuations.

10. What if I come into financial hardship?

Contact us as soon as possible. We'll let you know your options and put you in touch with the right people who can provide you with advice and help you through.

Some of your options could be applying for a mortgage repayment holiday, claiming on your KiwiSaver under the financial hardship clause, bringing in flatmates or utilising any cash savings you may have. Worst case, we’ll try to find a new buyer to take over your property and obligations.

If all fails and you stop making your mortgage repayments, your property investor has the right to buy you out and the bank has the right to sell your home to recoup their debt. Make sure you contact us early cause there's always a way through with the right advice and guidance.

11. What if I lose my job?

It’s always a good idea to set up an emergency fund. Contribute a set amount weekly or fortnightly, so you have a rainy day fund. Then you have enough cash to cover you until your next job starts.

Failing this, contact us as soon as possible. We'll let you know your options and put you in touch with the right people who can provide you with advice and help you through.

Some of your options could be to apply for a mortgage repayment holiday, claim on your KiwiSaver under the financial hardship clause, suggest bringing in flatmates or utilising any cash savings you may have. Worst case, we’ll try to find a new buyer to take over your property and obligations.

If all fails and you stop making your mortgage repayments, your property investor has the right to buy you out and the bank has the right to sell your home to recoup their debt. Make sure you contact us early cause there's always a way through with the right advice and guidance.

12. What if I become sick?

As part of agreeing to this Co-Ownership, you must have medical insurance, income protection and life insurance. This must remain in place for the entirety of the agreement.

Medical insurance will help you get the medical attention you need as quickly as possible so you can get back to work. Income protection will continue to pay up to 75% of your income while you are off sick. Life insurance will pay off your share of the mortgage if the worst were to happen.

We’ll help you set this up before you take on the mortgage.

13. How is my PROPERTY investor noted as having interests in the property?

Behind the title of ownership (which will be in your name) there is an agreement that determines your property investor as beneficial owners.

A Co-Ownership Agreement will be signed by you and the property investor and outlines the terms and conditions and their interests in the property.

In addition, a second mortgage will be registered in favour of your property investor against the property. This ensures that if or when the property is sold, your property investors interests will be met. It also means you won’t be able to increase your mortgage down the track without your property investor’s approval.

14. Who pays the rates?

You are responsible for payment of all rates and council levies.

15. Who pays the insurance?

You are responsible for building insurance. As well as your own personal medical insurance, income protection and life insurance.

16. Who pays for maintenance?

You are responsible for the costs of all non-major repairs and day-to-day maintenance. 

This does not include capital expenditure. Capital expenditure is defined as improvements which increase the value of the property. Both you and the property investor need to agree to what is done, the price and you’ll share cost equally.

17. What if I want to do the property up?

If this will increase the value of the property, then your property investor must agree on your plans. The costs will then be shared equally between you. 

If the property investor is not able to invest, but agrees on the work, then you’ll pay for the renovation upfront, record all the costs in writing and keep all the invoices. You’ll then be reimbursed once the property is sold or you buy out the property investor.

18. What is a Co-Ownership Agreement?

A Co-Ownership Agreement is a legal document between you and your property investor that confirms all the terms and conditions to this partnership.

19. Can I rent the property out?

You are expected to be living in the property for the 5 years of the agreement.

However if circumstances change, let us know straight away.

We’ll need to give your property investor 30 days notice. You’ll also need to use a property manager and if the rent is less than your mortgage and costs, you’ll need to pay the difference.

20. Can I have flatmates?

Yes of course. The number of occupants will be noted in the Co-Ownership Agreement. As it’s your name on the title, you’re responsible for the maintenance, upkeep and care for the property. So even if your flatmate damages the property, you’re responsible for it.

21. What if the property value doesn’t increase or worse, goes backward?

The reason there is a minimum 5 year time period to this Co-Ownership, is that this should see you through the normal ups and downs of the property wave. If a recession were to happen, they generally last for 6-18 months, and we tend to see values improve substantially afterwards. However, this can’t be guaranteed. There is always risk of property values remaining stagnant or even going backwards, but hopefully a minimum 5 year period is enough to ride this out. As with all investments, if the value decreases, you will lose part of your asset.

22. What other costs and fees will I have?

Other costs and fees you’ll need to budget for are legal fees, Levridge fees, and costs for reports such as registered valuation, building report, weather tightness report, LIM report and any other reports that might be appropriate to satisfy due diligence. Please refer to our fees for a full breakdown.

We estimate you’ll need $3,000-$4,000 to cover it. You may be able to withdraw this from your KiwiSaver.

23. What if I’m happy with the outcome of the due diligence reports but my PROPERTY investor is not? Or vice versa?

If one party approves the property for purchase after all due diligence reports have been received and the other party doesn’t, then either party has the right to pull out of the purchase at that point.

24. What does Levridge charge?

Levridge charges a one-off fee of equivalent to 1% (incl GST) of the property purchase price. 

Don’t worry. We know you don’t have this kind of money right now. So, you won’t need to pay the fee until you sell the property or buy out your investor.

This fee covers: 

  • Receiving and reviewing your application matching you with a property investor.
  • Meeting with you to discuss the process in more depth and answer any queries you may have. Facilitating the meeting between you and the property investor (should the property investor wish to meet you).
  • Legal documentation to confirm all terms, conditions and exit strategy. This is designed to protect both you and the property investor now and in the future. 
  • Guiding and managing you through the entire process. It should be easy, simple and fun!
  • Ensuring that both yours and your property investor’s criteria and preferences are being met.

We also provide ongoing service and advice as and when required, and are dedicated to ensuring that the long term outcome is a success for both parties. Levridge charges a percentage-based success fee for this service which is 5% of the capital growth. No profit, no fee.

25. What if I have questions or need help down the track?

We’re not only here to help you buy your home, but right up until you’re ready to sell or buy out your property investor. You can contact us at any stage for help or advice.

if You have any more questions...

Check out the links below, if you still have questions please use the contact form below to get in touch.

Apply to Buy

Get in touch

We love property and we want to help you make the most of it.

Let's start the conversation and see what we can do for you.

Phone: 09 815 1918

Visit: Level 9, 4 Williamson Ave, Ponsonby, Auckland 1021

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