Buy2Co-own (Co-ownership)
What is a Co-ownership package?
Co-ownership: The art of investment is making your money work for you and real estate is one tested and proven way your money can work for you for a very long time. With our co-ownership package, you can buy a piece of a property for as low as N16,000 and own the property with other co-owners.
What do I get as proof of my shares for a property I co-own?
When you buy one or more shares of co-ownership properties, you immediately become a co-owner and a fraction of the property shares is allotted to you based on the number of shares purchased. A shareholder certificate is also issued to you and you can access a copy of your certificate on your BuySmallSmall dashboard.
Is there any danger in co-owning a property with strangers?
The Co-ownership package is properly structured to ensure each co-owner investment is protected and rewarding. Co-ownership properties are available either as free-hold or fixed hold, which allows an investor to invest based on their appetite.
How long can I hold a property with other co-owners?
For Freehold, you can own and hold only your shares for as long as you want, except a vote is passed by 80% of shareholders for the property to be sold.
For Fixed-hold property, shares purchased are held for a time certain(fixed term), upon expiration of the hold period, shareholders can migrate to sole-ownership or exit with the promised buy-back gain.
As a co-owner, can I sell or transfer ownership of my shares
Yes, you can sell or transfer, but the liquidation must be done on the BuySmallSmall platform by submitting a request to us on your dashboard.
How can I increase my share in a property that I’m already a co-owner?
You can look out for opportunities when other co-owners are looking to sell their shares. BuySmallSmall will notify all co-owners of this sale once we receive the request without disclosing the seller identity. We will give the date and time the shares will go live on our secondary market, but the shares will only be sold on a first come first serve basis.
Any peculiar condition for transferring or selling Freehold Shares?
You can transfer your shares anytime, set your price and sell anytime, but the property cannot be sold as a whole except 80% of shareholders vote for a sale at the annual Sell or Keep event.
Any peculiar condition for transferring or selling Fixed-hold Shares?
You can transfer, set price and sell only your shares within the fixed term after a one year holding period and within the cap share price as stipulated by BuySmallSmall to reflect the market value of the property at the time of the transfer, but you are required to exit at the end of the hold period.
Is the fixed-hold maturity date a specific date?
Yes, buySmallSmall gives the specific maturity date on all fixedhold listed co-ownership properties. i.e the day, month, and year.
How does BuySmallSmall protect co-owners investment and ensure there are no conflicts of interest amongst co-owners?
For the purpose of transparency, accountability and avoidance or management of conflict, BuySmallSmall appoints and pays a Publicly Listed Asset Management Company as Trustee(s) to hold and manage properties acquired under the co-ownership package.
Does BuySmallSmall have a skin in the game?
Yes, we do. BuySmallSmall invests and holds at least 1%, as co-owner, in every property listed for co-ownership.
Who holds the Title of a Co-ownership property?
All properties acquired by co-owners on BuySmallSmall are immediately registered with the State Land Registry under an SPV facilitated by the appointed independent Trustee. The original registered title documents are kept by the Trustee.
What type of Return On Investment does BuySmallSmall co-ownership give?
The returns are through Property Appreciation and Guaranteed Rent
How much Returns does BuySmallSmall give to co-owners?
The total return on investment for fixed-hold properties Rent Return + Buy-back Gain, and return for freehold properties are derived from the sales proceeds + guaranteed rent. Return Rates are influenced by the location of the property and the time of the sale. In Prime locations like Lekki Phase 1, Oniru and Ikate, appreciation can get as high as 100% to 150% in a year.
Can co-owners of freehold property earn Guaranteed Rent on properties undergoing development?
No, guaranteed rent would commence upon completion of the development.
Do I wait for BuySmallSmall to put a tenant in the newly completed freehold property before I start earning rent return?
No, we wont keep you waiting. BuySmallsmall uses a wait list from its sister product,
RentSmallSmall, to secure tenants for the property before it’s completed.
What happens if the property is not delivered on the set completion date?
Whether property is delivered on the set date or not, your rent return starts counting from the set date of completion.
When and how is the sales proceed paid to freehold co-owners?
The proceeds is paid into the account of co-owners within 21 working days after sale is completed.
How does Guaranteed Rent work?
Only co-owners of freehold properties get guaranteed rental income. The guaranteed rent not only gives co-owners a passive cash flow, but it ensures the property has enough cash-flow to cover running costs which include property insurance, property maintenance, property management, and land-use-charge.
How is Guaranteed Rent and Appreciation calculated?
Appreciation is a prediction of value based on current and anticipated market conditions and home conditions. These estimates may be influenced by many factors, some specific to the local market and some related to the broader economy.
What type of tenant does BuySmallSmall put in the co-ownership property?
For Freehold, properly vetted tenants from RentSmallSmall are secured for the properties. For fixed-hold, the properties are repackaged and offered as Rent2Own to premium tenants who are locked in a contract as a potential buyer at a pre-agreed price for a period not exceeding the property hold period.
Is there a running cost after I’ve purchased a co-ownership property and who bears the cost?
Co-owners on BuySmallSmall enjoy zero out-of-pocket cost on any property they co-own. This is made possible through a deductible from the generated rent and set aside for the property maintenance before the guaranteed rent is distributed to co-owners. The expenses covered in the running fund includes, property letting and management charges, property insurance, property maintenance, state land-use-charge e.t.c.
When and how is the Co-ownership Guaranteed Rent (GR) paid to co-owners?
The rent is paid into the wallet of co-owners annually in the proportion of shares owned, but we also give liberty for co-owners to choose if they want monthly or quarterly payment.
Who handles the letting and day-to-day management of a co-ownership property?
The properties are let-out and the day-to-day operation is managed by Small Small Technology.
Do I get a shareholders report?
Yes, a quarterly report is shared with all shareholders.
How do I become a Co-owner?
- Browse any of our pre-vetted properties that match your investment appetite.
- Select the number of shares you want to buy
- Complete our KYC form
- Review all terms and make payment
Can I buy shares across multiple properties?
Yes, you can buy shares of any co-ownership properties listed on BuySmallSmall whilst the properties are live and the shares are not sold out.
Is there a limit to the number of shares I can buy?
No limit to the number of shares you can buy.
What are my options if I’m looking to own an entire property after I’ve accumulated multiple shares across different properties?
We’ve made it possible for you to grow on your home ownership journey, therefore, you can consolidate all your shares and sell them. You can use the proceeds of your sold shares, if sizeable enough, as down payment or full payment on a property listed on BuySmallSmall that is within your budget.
Can I buy co-ownership shares and send them as a gift?
Yes, any registered member of BuySmallSmall can login into their account, buy shares and send to others. The shares can be purchased and sent as gifts to spouse, friends, colleagues and family members.
How do I buy co-ownership shares and send them out as a gift?
- Browse active listings on the co-ownership page.
- Select the number of shares you want to buy.
- Complete our KYC form
- Provide the name, phone, email of the person you’re buying the shares for.
- Review all terms and make payment
As a gift, are there options to customize the Shares delivery?
Sending a gift and receiving one should be a beautiful experience and we are not going to make this one less; after all, Real Estate is the world's oldest tangible asset. Some options we’ve put together in order to allow you add a personal touch to the gift are:
- A field on the recipient form to write a personal message to the recipient (Free)
- A call from us to the recipient notifying them of the gift (Free)
- A special delivery of the shares certificate hard copy (See sample of packages and prices)
- A blank creative field for you to tell us the custom delivery you have in mind (YTD)
You can select as many options as you like and we will do the necessary follow up.
What is the next step after I’ve successfully sent the Shares gift?
The recipient receives a notification in their email with details of the gift and a request for them to sign-up to claim the gift. Once they’ve signed up, on their dashboard, there is a button to accept or reject the gift. If the recipient accepts the gift, the recipient will see the gifted shares in their property portfolio and their shares certificate.
What if the recipient is already a registered member on BuySmallSmall
If our system identifies the recipient’s email you provided as a registered member on BuySmallSmall, the notification email will prompt them to login and claim the gift. If the email you provided is not recognized by our system, they will be required to sign up to claim their gift.
How do I confirm the recipient has received the gift?
A delivery confirmation email will be sent to you once the recipient sign-up or logs in using the link provided in the notification email and accepts the gift by using the accept button on their dashboard.
What happens if the recipient rejects the gift?
A notification email will be sent to you. Thereafter, you can use the gift recall button on your dashboard to recall the shares; the recalled shares will be added back to your portfolio immediately and you will get a successful recall notification in your email . We will also send a recall notification email to the recipient.
Shares that have been accepted by the recipient cannot be recalled, except there is fraudulent activity involved and you logged a complaint to us.
What happens if the recipient ignores the email notification as spam?
If you select any of the options that allow us to engage the recipient either through call or physical visit, we will notify the recipient. However, if you didn’t select any of the personal touch options that will allow us to contact the recipient directly, a mail will be sent to you at intervals to remind you that the recipient hasn’t claimed the gift. The other option we will suggest in this situation is that you call the recipient yourself and inform them of the gift.
What happens if the gift was never claimed by the recipient and I can’t reach the recipient?
We will keep sending a reminder email to the recipient for a month, after that, if the recipient still hasn’t claimed the shares, we will send a notification suggesting to you to recall the shares back to your portfolio.
Is there an age limit to buying and holding shares on BuySmallSmall?
Yes, the legal age is 18. However, shares can be purchased for pupils under 18 as a gift, but a custodian must be appointed to hold and manage the shares on behalf of the recipient. Parents who are buying shares for their under 18 children can create a dependent profile on their own dashboard and set up auto transfer of the shares to the children at 18 years old.