BUY­ING PROP­ERTY WITH LOVED ONES

Highfields' Own - - REAL ESTATE -

Ac­cord­ing to Loan Mar­ket, in­ter­est rates are the low­est they’ve ever been, but many peo­ple are still find­ing a chal­lenge in pur­chas­ing a home on their own.

If you’re look­ing to en­ter the prop­erty mar­ket or ea­ger to climb up the prop­erty lad­der, the so­lu­tion could lie in buy­ing prop­erty with fam­ily and friends.

While there is al­ways the chance of un­fore­seen is­sues with those close to you, there are also many ben­e­fits from team­ing up with your loved ones to ac­quire a new home:

Pros

■ Bet­ter chance of home loan ap­proval — having two or more peo­ple on the home loan ap­pli­ca­tion can fa­cil­i­tate the process and in­crease your chances of be­ing ap­proved as two in­comes are gen­er­ally bet­ter than one.

■ Split ex­penses — buy­ing a prop­erty with some­one else means you’re split­ting all the costs, mak­ing it eas­ier and more af­ford­able.

Cons

■ Un­pre­dictable cir­cum­stances — a fall out with our fam­ily or friends is not un­com­mon, so it’s im­por­tant to re­mem­ber to sep­a­rate busi­ness from plea­sure and not let per­sonal is­sues get in the way of your prop­erty ties.

■ Sell­ing — un­fore­seen events can have you or the other party/s want to sell up. As the process of sell­ing can of­ten be a com­pli­cated or a lengthy one, make sure you have a strong re­la­tion­ship with the per­son you’re buy­ing with. When en­ter­ing any type of fi­nan­cial agree­ment with fam­ily and friends, it’s wise to get a co-own­er­ship agree­ment drafted by your solic­i­tor to avoid things go­ing pear-shaped. This agree­ment will out­line any ob­sta­cles you may face such as who chooses ten­ants, prop­erty man­agers or what hap­pens when one of you de­cides to sell. Ul­ti­mately, own­ing prop­erty with some­one you know can be a great step to your fi­nan­cial fu­ture and help you get the prop­erty portfolio you want sooner.

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