“I Bought A Property With My Friend” 3 Singaporeans Share Their Experience Co-Owning A Property

When it comes to home ownership, the “default” mode is to buy with your spouse, parents, or siblings. However, we’ve come across some Singaporeans who have purchased properties with totally unrelated people; and some have even done so as business ventures. Here’s a look at some interesting co-owners, and how their experiences in investing with others:

1. Co-investing in a walk-up with a former colleague

Remus had just left his job with a colleague in 2009, during the peak of the Global Financial Crisis. However, the two of them were fortunate in their timing. Remus and his colleague had left the finance industry just before the worst of the crisis, and were mostly unscathed:

“We were both sitting on a nest egg, and we weren’t confident in the equities market at the time. We were also certain of other standard deviation events, black swans to come if you like. But at the same time I have always loved hotels, casinos, and the hospitality line, although I didn’t have the capital for that.”

While Remus didn’t have the capital to start a boutique hotel – which remains his end goal – he and his colleague both saw an opportunity and a safe haven in real estate. The two purchased an older walk-up apartment in the Siglap area, and refurbished it in the style of a bed-and-breakfast Remus had once stayed in abroad.

While he prefers not to disclose too much, Remus says he and his former colleague have “an almost equal share” in the unit, and there was a plan to buy out his co-owners share at a later date (although this didn’t manifest, and they remain co-owners till today). 

He says there were a few disputes over the years, but these were also resolved amicably; and he feels the relationship is actually more stable than co-owners who are family members:

“We have had disagreements over the agent we use, what to do with certain problem tenants, and so forth. But the experience is positive and we’re actually less likely to quarrel, unlike parents co-owning with children, or spouses. We’re doing it as a business so we have mutual objectives, and we’re not overly emotionally invested in it.”

One example of this is the way the property loan is handled: as Remus’ colleague has more experience in this field, issues like refinancing are left entirely to him – and Remus is constantly updated on the relevant changes. He feels this is “more conducive to co-ownership than informal arrangements, where sometimes one partner doesn’t understand what the other is doing, or where roles are not as clearly delegated.”

Nonetheless, Remus does say that arrangements such as theirs are probably less likely to happen today, as property for investment is being discouraged by ABSD. He also notes that financing was easier in the past, compared to today’s higher rates and loan curbs.

2. Buying with a childhood friend

Back in 2011, PM purchased a two-bedder in the Telok Blangah area, with a person he describes as a “childhood friend.” This was a matter of mutual interest:

“I have known her since I was five years old, she used to be my next door neighbour and we played all the time. So I trust her completely. I can’t buy an HDB flat as I am Malaysian, and she was still applying for her permanent residence unsuccessfully. But we both needed a place to stay.”

PM says he went ahead to buy a unit with her, despite being discouraged by his family and even his own property agent:

“Even the property agent said there could be problems, like if she didn’t pay her share what was I going to do? But I have trusted her with more money before, let’s put it that way, so we went ahead but not as joint tenants.” 

PM and his co-owner opted for tenancy-in-common, with each party owning a percentage of the property, and being able to sell their share to someone else. In addition, PM’s share of the unit will go to one of his family members if he passes on, although he prefers not to disclose his legacy planning. 

In 13 years, PM has only had one serious dispute, and this was regarding an extensive renovation plan. 

“She wanted to pay more than $50,000 to renovate, which I felt was too much. I did my own research, and I found a contractor that could do it for almost $10,000 less; but she was quite stubborn about wanting this specific contractor because it was her friend’s cousin.”

In the end, the two came to terms and PM accepted the pricier contractor, in exchange for bearing less of the renovation costs. 

“I think you cannot compromise too much,” PM says, “Because your finances are not tied, sometimes one is more spendthrift than the other. So you need to draw the line more clearly.” 

3. Co-owning a property with a family friend

MX is a rare homeowner whose very first property was a condo, and who managed it in her mid-thirties.  But she does say she needed help from her parents, and what made it possible was co-ownership with a friend of the family:

“It’s actually a former colleague of my mum, who used to work with her in Japan; and I’ve known her since I was seven,” MX says, “She was interested in buying a property in Singapore for long-term investment, but she was also worried there would be no one to look after it as she was still stationed overseas.” 

As MX was also looking for her own place at the time, her mother’s colleague broached the idea of making a joint purchase: MX could look after the place and rent out a room or two if she chose. The pair eventually decided on a unit at The Minton (Hougang). This was around 2010, and MX notes that the timing was lucky as the ABSD was implemented about a year later. 

“At first my parents weren’t sure I should go ahead with it,” MX says, “They were concerned the repayments were too much, and my dad was uncomfortable because I was a woman living alone, so he felt it’s dangerous for me to have tenants. They were also concerned because I couldn’t buy an HDB flat anymore*, so it was like a point-of-no-return sort of thing.”

MX says there are some inconveniences in the arrangement, as sometimes her co-owner has been unhappy about the state of the unit. MX is also worried that her co-owner will want to sell right now, as the cost of a replacement property in 2024 is prohibitive. 

“I think I’m lucky overall though, as most of my peers didn’t have the opportunity to buy private at today’s prices. And the property has appreciated, so despite the bumps on the road, this was a win-win turnout.” 

Nonetheless, MX says it may not be worth the stress, especially if your co-owner isn’t related but is a close friend of your parents. She says that on a number of occasions, she has had to make compromises to avoid also souring the relationship between her co-owner and her mother. 

*To clarify: You cannot buy an HDB flat while you own a private property, but it’s not permanent. You can still buy a flat provided you dispose of the private property within six months of buying a flat. As of 2024, there is also a temporary waiting period: you need to wait 15 months after disposing of a private property to buy a resale flat, unless you are aged 55+ and moving into a 4-room or smaller flat.

Have you or do you currently co-own a property with someone besides a family member? Do reach out to us and share your story! You can also follow us on Stacked for shared experiences among homeowners.