Everyone talks about getting onto the property ladder, but let’s be honest—the price of that first step keeps soaring. The idea of handing over full control of your biggest asset sounds nerve-wracking, but what if you could just sell part of your home instead of the whole thing? Popping up in conversations from Auckland café tables to news stories, shared ownership isn't just for first-time buyers anymore. Homeowners with decent equity, or even those a bit stuck, are starting to ask: can you actually sell shares of your house?
What Does Selling Shares of Your House Mean?
It almost sounds like you’re offering stock on the NZX, doesn’t it? But in housing, "selling shares" usually means splitting up ownership. Instead of one person or family holding the whole title, two or more parties own a percentage each. These interests can be split in lots of quirky ways—maybe you each live in part of the house, maybe only one of you does, or maybe it’s just an investment for someone else.
Shared ownership is nothing brand new in New Zealand, but it’s definitely grown up. Banks like KiwiBank and new fintech startups have started to offer models that let you sell a "chunk" of your house as an investment. Instead of refinancing or taking out a loan, you access some money by selling, say, 10% or 20% of your home at market value to an investor. The investor doesn’t move in—they’re just betting your house will go up in value, and you pay them out later or when you sell. Sounds simple, but the fine print is where you want to keep your wits sharp.
The old-school way to sell shares is called "tenancy in common." This means each owner gets their piece of the home property and can buy or sell it as they please. Families sometimes use this when pooling their money, or when older parents want to help kids get a head start, but keep their own name on the title. If you’re after a corporate twist, new home equity agreement companies are springing up with legal contracts covering all the risks.
People look to selling shares for different reasons. Some want to cash in on sky-high home values but aren’t ready to downsize. Others need a rescue from mortgage stress. Either way, the rules are stricter than most folks assume, and it’s not always a fit for everyone.
An interesting stat: In current estimates for 2024, around 8% of all Auckland home purchases involved some form of shared ownership. That’s up from just under 2% back in 2019, a clear sign that buyers and owners are getting creative as prices continue to rise.
Different Ways People Sell Shares of Their Homes
You’ve got options if you want to sell part of your house, but there’s no ‘plug-and-play’ formula everyone follows. Let's break down how people are sharing property in New Zealand and what it really looks like on the ground.
Shared ownership schemes are probably the best-known setup. With these, you buy a slice of the property—say 25%—and a housing association or council owns the rest. You pay rent on the piece you don’t own, plus mortgage on your bit. If you start earning more, you ‘staircase’ up: you buy further shares in the property over time, paying less rent as you go.
Private co-ownership is getting trendy, too. Think two friends or siblings pool money, buy a home, and split the title. Or maybe a young family buys with parents to get through Auckland’s mad prices—each person’s share depends on how much they chip in. A solid property sharing agreement spells out who pays for what, who can sell or rent out their share, and what happens if someone wants out.
The freshest thing on the scene is the co-investment model. Kiwi home equity platforms like "Kōura" or "Fractional" let people sell a fixed percentage of their home to investors (sometimes total strangers). Homeowners unlock quick cash, and investors hope to pocket profit if property values soar. You don’t usually pay rent in these cases, but you might pay a fee, and you must settle up when you eventually sell the home. Some arrangements cap how long they’re open—if you haven’t sold after, say, five or seven years, you’re legally required to redeem the investor’s share at current market value.
Let’s get specific. Here’s a table showing the three most common models for selling home shares in New Zealand:
| Model | Who Owns | Main Costs | Key Considerations |
|---|---|---|---|
| Traditional Shared Ownership | Homeowner + Housing Association/Trust | Rent on share you don’t own + mortgage | Always check staircasing rules |
| Private Co-Ownership | Two or more private individuals | Split purchase costs & bills | Vital to have a clear legal agreement |
| Home Equity Sale (Fintech Model) | Homeowner + Investor/Company | One-off fee or future profit share | Redemption limits and exit timelines |
Each model comes with different paperwork and long-term impacts. For example, shared equity schemes count as a financial product under NZ’s Financial Markets Conduct Act, so there’s a truckload of legal protections (and a fair whack of fine print) to wade through.
Private deals with family or friends can be less formal, but always—seriously, always—use a property lawyer to avoid any future dramas. There’s nothing like a family holiday turning frosty because someone didn’t read the co-ownership agreement. If you go the co-investment route, always research the platform: check reviews, ask about regulation, and talk to people who’ve actually used them.
Pros, Pitfalls, and Everyday Realities
Selling shares of your home can feel like unlocking a secret savings account, especially if you’re looking at your mortgage statement wondering when you’ll ever see some of that equity in real life. Loads of homeowners use shared ownership to access money for school fees, renovations, or startup capital—without getting a hefty new loan or selling up completely.
On the plus side, you keep your address (and your favourite lemon tree), unlock instant cash, and share the risks if prices dip. Plus, for lots of first-timers, shared purchase is the only ticket into Auckland’s roaring housing market.
But it’s not all rainbows. You’ll give up a slice of your future profit, which could sting if the market booms. Some co-ownership contracts cap your right to make big changes without everyone agreeing—think big renovations or even putting up a treehouse for your kids. If you pool with friends, personalities can clash. And some fintech companies charge higher fees than a regular bank loan might. Always compare costs before you leap.
Taxes are another curveball. The bright-line test in New Zealand means you might pay tax on your gain if you sell within a set number of years, usually within ten. Selling just a share can trigger similar rules, so check with an accountant to dodge any nasty surprises come tax return time. There are also conveyancing fees (those lawyers never work for free), plus charges for valuations and contract setup.
One Auckland case that stood out: a couple who used a home equity platform to cover IVF expenses, selling a 15% share to investors. While it worked—they got their baby, Nolan, and kept the house—they did agree to a strict repayment timetable. That repayment squeezed hard when interest rates climbed, so don’t underestimate future impacts when weighing up offers.
Here are some everyday tips to keep things positive:
- Always get independent legal advice—don’t rely just on the scheme’s experts.
- Read the agreement. Even the boring parts. Twice.
- If you’re buying with family or friends, have the big grown-up talk about what happens if someone loses a job, splits up, or wants out.
- Compare costs, exit fees, and flexibility with a regular mortgage or line of credit.
- Plan for worst-case scenarios—like a drop in the market or a sudden need to move.
Making the Call: Should You Sell Shares of Your House?
Everyone’s situation is different. Maybe you’re house-rich but cash-poor, or you want to help kids buy a first home without signing your life away as guarantor. Selling shares lets you do something with your equity—it’s a way to get creative with assets, especially when traditional refinancing doesn’t work or feels too risky.
If you’re keen to explore this path, start with some basics. Check your loan documents—many banks have strict rules on co-ownership and equity sales. Some lenders demand you pay off a mortgage entirely before you can tinker with the ownership structure. Others might allow it, depending on your loan-to-value ratio (LVR) and payment track record. Don’t make a move until you’re sure you’re onside with your lender.
Try chatting with a mortgage adviser, not just someone who’ll give you a quick yes. Throw every ‘what if’ scenario you can think of at them: What if I lose my job? What if we want to extend the house? What if the market crashes next year? Good advisers—especially those who know the ins-and-outs of Auckland’s market—can run you through all the possibilities, including what happens at the end of the contract.
There's nothing wrong with wanting to use your home’s value to ease family pressures, pay for uni, or invest in your own business. Shared ownership, or selling shares, is one way to keep your foot firmly in the market while solving those problems. Like any big decision, it’s a juggling act between flexibility, risk, and future reward.
Feeling like the traditional ways of owning a house don’t fit anymore? You’re not alone. Property is getting split up in new ways every year—by need, by creativity, and sometimes by necessity. Stay smart, ask the tough questions, and you’ll find the option that fits your life best.