It’s quite simple actually.
Faction breaks down the barriers to owning and managing a second or holiday home, enabling vetted members to join together as true co-owners of beautifully styled and managed properties. The platform works with a network of real estate agents to offer expanded access to buyers for the finest properties in the most desirable locations in Australia. The managed experience of co-ownership through Faction creates access to homes that might otherwise be out of reach, providing the enjoyment and utility that comes with a second home with all the financial upside of true ownership.
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Transparency is our guiding principle.
Faction acquires desirable properties, sets a 4-month settlement period during which the property is rented from the current owners, and sets about professionally styling and modernizing the home.
Faction provides the legal structure to support up to 8 co-owners and purchases any outstanding shares, which will continue to be available on the platform, but at a slightly higher rate to account for stamp duty incurred in NSW. There is a 1.5% fee on all homes to compensate Faction for organizing the legal structure and vetting the independent co-owners.
Faction presents the property to its community and offers 1/8 co-ownership stakes, representing 45 days of enjoyment per year. Potential co-owners then have until the established closing date to execute on the property.
All styling and modernizing costs are clearly displayed upfront to co-owners and are passed along at cost. Moving forward, all maintenance and cleaning responsibilities are fully managed by Faction, and passed along at cost. There is an ongoing annual $999 fee per 1/8 share for managing bookings, cleaning, and maintenance.
Faction’s initial focus is solely on properties in New South Wales, and the platform is set up to accommodate local Australian and international buyers from the United States. Faction runs an equitable booking system amongst co-owners to ensure fair access to the most desirable dates, and provides each co-owner with a dedicated, locked storage closet in most properties. Co-owners are strictly prohibited from listing their allocated dates on Airbnb or renting that time out.
When buying a second home through Faction, co-owners agree to keep their share of the property for at least one year, then are free to sell their stake at a price they determine, just as if they owned the home outright. Faction facilitates this sale with our network of trusted real estate agents.