How it works

The simplest way to think about it.

Two people co-own a home. One lives in it and runs it. The other simply holds equity. A non-profit keeps the score and applies the same fair rules to both — and there's no bank in the middle.

The model

Co-ownership, made fair and repeatable.

A Resident Owner buys the share of a home they can afford. A Passive Owner — often the home's existing owner — holds the rest. They own it together as tenants in common, both registered on the title. The Resident Owner occupies the whole home as an owner, not a tenant.

The Resident Owner

lives in it

Buys a share (e.g. 20%) and moves in
Makes every decision about the home
Pays all the running costs
Builds equity toward owning more

The Passive Owner

holds equity

Holds the rest of the property
Earns an index-linked return
No tenancy, upkeep or vacancy
Paid first when the home sells

The Passive Partnership Administrator

Passive Partnership Administrator · keeps it fair

Keeps the quarterly ownership register
Collects and distributes weekly payments
Takes no profit — cost recovery only
Works for both owners equally

Meet the players in detail →

Step by step

From moving in to owning more.

Pick a property and a share

Choose the home and the portion you can afford — starting from 20%. A Passive Owner holds the balance.

Sign one short agreement

A standard co-ownership deed drafted with Chapman Tripp. You're registered on the title as a co-owner.

Move in and live like an owner

Pets, paint, renovations — all your call. You occupy the whole home as your principal residence.

Pay an occupancy fee

An occupancy fee on just the share you don't yet own — set below market rent, and fixed for the term. (See how it's calculated.)

Buy more or keep owning just a part of the home

There is no requirement to own 100% of the home — choose whatever % works for you. Top up your share whenever you can, at index-linked prices.

Either party can sell, anytime

You can sell the home any time, by any method you like, so long as the Passive Owner is paid out. The Passive Owner can sell their interest to anyone at any time, and that will not affect the Resident Owner.

How value flows

Whoever creates the value, gets the value.

The Passive Owner's share always tracks the regional-average change in price. So any value you add above that — and any loss you cause below it — flows to you, the Resident Owner. It's the mechanism that makes this co-ownership without the usual co-ownership conflict.

Five houses comparing the ownership split on a $700,000 home. Starting point: you buy 20% ($140,000 yours, $560,000 theirs). Renovate the kitchen (+$80k) and your share rises to 28.2% — you keep the full $80,000 and their $560,000 doesn't move. Let the place run down (−$60k) and your share falls to 12.5% — you bear the loss and their $560,000 still doesn't move. If the whole region rises 20% or falls 10%, the split stays at 20% because both shares move together, and there's no negative equity because you have no debt. — Illustrative, on a $700,000 home starting at a 20% resident share.

The starting point

You buy 20% of a $700,000 home · $140,000 yours, $560,000 theirs — two owners on one title, no mortgage.

You renovate the kitchen (+$80k)

Their $560,000 doesn't move · You keep the full $80,000 — your share rises to 28.2%

You let the place run down (−$60k)

Their $560,000 still doesn't move · You bear the loss — your share falls to 12.5%

The whole region rises 20%

Both shares rise 20% · The split is unchanged at 20%

The whole region falls 10%

Both fall 10%, split unchanged · No negative equity — you have no debt

The ownership register

One simple rule, applied every quarter.

An ownership register records exactly what each of you owns. It's updated every quarter, and only three things can ever move it.

The property index — the regional average change in value (e.g. CoreLogic).
A top-up — when the Resident Owner pays to buy more of their home.
An independent valuation — e.g. after renovations, or to confirm the position.

The rule Passive Owner = previous × (1 + index) − top-up Resident Owner = new value − Passive Owner

The Passive Owner tracks the market average exactly. The Resident Owner gets everything specific to this home — the gains they create and the losses they cause.

Try the register calculator →

Fees & costs

Much lower cost of ownership for both Resident Owner and Passive Owner.

For the Resident Owner

No bank costs and no bank profit — saving around $10,000 per year.

For the Passive Owner

Vastly lower management and compliance costs — saving around $7,000 per year, meaning higher returns and less hassle.

Illustrative, on a $700k home. The occupancy fee is set below market rent and charged only on the share you don't yet own. GST applies to the Administration Fee, not to the occupancy fee or top-ups.

Compare the full numbers →

If things change

The honest "what if".

A new way to own should answer the hard questions up front. Here's what happens when life, or the market, moves.

The market falls

Both shares fall together with the index — you can't go into negative equity, because there's no loan. And you can buy more at the lower price.

You miss payments

A clear, staged process applies. A forced sale is only ever a last resort, after notice — and never while a payment is genuinely in dispute. (Why default risk is far lower here.)

Your share drops below 20%

You have up to 5 years to top it back up — a lump sum, small weekly payments, or by improving the home and revaluing. (See the top-up calculator.)

You want to move on

You can sell the home at any time, on your terms. The Passive Owner is paid their recorded share first; the rest is yours. (See the proceeds split.)

Where to next

See what it means for you.

The model is built for both parties. Pick your path, or run your own numbers.

For residents → For investors → Open the calculators →