Two friends buying an apartment to rent together. A couple and their parents pooling their resources to acquire a family home. These arrangements have existed for a long time, but banks are now looking at them differently. Since the rise in rates that began in 2023, combining multiple borrowers on the same application often allows for compliance with the maximum debt-to-income ratio and makes financing possible where an individual application would be rejected.
Why banks are more accepting of collective loan applications
The mechanism is simple. When a bank reviews a mortgage application, it adds up the incomes of all co-borrowers. The result: borrowing capacity increases, the monthly payment is distributed, and the perceived risk by the institution decreases.
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Several brokers noted at the end of 2023 a reopening of credit conditions for co-borrowers, with a return of long terms (up to 25 years, sometimes with a two-year deferral) to keep the monthly payment manageable despite the level of rates. The option to finance a real estate project together then becomes a real solvency lever, not just a lifestyle choice.
In practical terms, a collective loan is not a distinct banking product. It is a conventional loan whose deed mentions several joint borrowers. Each commits to the entirety of the debt, which reassures the bank but creates shared responsibility that must be measured before signing.
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SCI or joint ownership: how the choice of structure affects financing
You are buying with three or four people. Should you create a real estate civil company, or remain in joint ownership? The answer depends less on the purchase itself than on what happens afterward.
Joint ownership, quick but rigid
In joint ownership, each buyer holds a share proportional to their contribution. No creation formalities, no statutes to draft. The notary records the shares in the purchase deed, and that’s it.
The problem arises when one co-owner wants to exit. Any major decision generally requires unanimity: sale of the property, major renovations, change of use. If one of the co-buyers wants to recover their investment, the others must buy their share or agree to sell the property. A joint ownership agreement drafted by a notary limits these blockages, but does not eliminate them.
The SCI, more flexible over time
The SCI separates the property from its owners. Each partner owns shares, not a fraction of the wall. Transferring shares does not force the sale of the building. Management can also be organized through tailored statutes: simple majority for certain decisions, designated manager, approval clauses.
In return, the SCI imposes accounting, annual general meetings, and creation costs. For a purchase among friends or family members with a long-term horizon, the SCI offers a smoother exit than joint ownership.
- Joint ownership is suitable for two people in a couple or a short-term purchase, with a well-drafted agreement.
- The SCI makes sense with three or more partners, especially if the goal is a rental investment over several years.
- In both cases, the bank requires the solidarity of borrowers: each remains responsible for the entire loan.
Distribution of expenses and rental management among co-investors
Buying together does not only raise financing questions. The daily management of the property, especially in rental, generates friction if nothing is anticipated.
Who collects the rents? Who pays the property tax? Who decides the rent amount or the choice of tenant? These points seem trivial at the time of purchase. They quickly become the main source of tension among co-owners.
Setting management rules in writing before signing the deed avoids most conflicts. In an SCI, the statutes and internal regulations frame these questions. In joint ownership, the joint ownership agreement plays this role, provided it is precise about the distribution of current expenses, works, and rental income.
A often overlooked point: the taxation of income. In joint ownership, each co-buyer declares their share of rents in their personal income. In an SCI subject to income tax, the mechanism is similar. However, opting for corporate tax in an SCI allows for property depreciation and reduces taxable income, which changes the net profitability of the operation in the long term.
Real estate crowdfunding: investing together without buying together
Buying a property in common is not the only way to pool a real estate investment. In recent years, crowdfunding platforms like Homunity have offered individuals the opportunity to invest a few thousand euros in real estate projects, often in the form of bond debt over short durations (from twelve to thirty-six months).
The operation differs radically from traditional collective buying. The investor does not own a wall, a share, or management responsibility. They lend money to a developer or property trader and receive interest at maturity. The entry ticket remains accessible, attracting profiles who do not have sufficient capital for a traditional purchase.
This type of investment carries a risk of capital loss. The developer may encounter difficulties, and repayment is not guaranteed. It does not replace a traditional rental investment but complements a wealth strategy for savers who want exposure to real estate without the constraints of co-ownership or rental management.
Whether buying with two, five, or through an online platform, the principle remains the same: pooling financial capacities to access properties or yields that are out of reach individually. The difference lies in the level of desired involvement, the degree of control over the property, and the duration of commitment. It is better to choose the option that corresponds to one’s risk tolerance and actual availability to manage a shared asset.