Tak­ing that big step

Port Douglas & Mossman Gazette - - REAL ESTATE -

AT Valen­tine’s Day it’s not un­usual for many peo­ple to con­tem­plate the fu­ture with their loved one. Some peo­ple dream of mar­riage and chil­dren, while for oth­ers, pur­chas­ing a prop­erty to­gether may come into the equa­tion.

Mort­gage Choice spokesper­son Jes­sica Darn­brough says fo­cus­ing on a shared dream of prop­erty pos­ses­sion can of­ten help cou­ples get into the mar­ket sooner.

Ac­cord­ing to Ms Darn­brough, pur­chas­ing a prop­erty with some­one else, such as a part­ner, spouse, fam­ily mem­ber or friend, is an in­creas­ingly pop­u­lar and vi­able way for many Aus­tralians to en­ter the prop­erty mar­ket.

‘‘The lat­est Mort­gage Choice Fu­ture First Home Buyer sur­vey* found 67 per cent of Aus­tralians plan to buy with a part­ner, spouse, fam­ily mem­ber or friend – sig­nif­i­cantly higher than the 30 per cent who said they would pur­chase a prop­erty on their own,’’ Ms Darn­brough said.

‘‘ Pur­chas­ing with some­one else of­ten makes prop­erty own­er­ship more af­ford­able. It is a strat­egy that en­ables po­ten­tial buy­ers to pool their money for a de­posit and utilise their bor­row­ing power to get a loan.

Co-own­ers can split the cost of the prop­erty and all the as­so­ci­ated ex­penses, so that re­pay­ments are no­tice­ably less than what you’d pay if you were buy­ing solo,’’ she said.

So if you’re think­ing of tak­ing your re­la­tion­ship to the next level this Valen­tine’s Day by pur­chas­ing your dream home with the one you love, there are a few things to con­sider be­fore jump­ing in head first:

Know what both par­ties want: When con­sid­er­ing pur­chas­ing a prop­erty with some­one else, it is im­por­tant to know whether or not you both plan to live in the prop­erty, or earn in­come from rent­ing it out par­tially or wholly. Con­ces­sions and grants along with tax breaks and other pos­si­ble out­comes – both neg­a­tive and pos­i­tive – of an in­vest­ment need to be taken into ac­count.

In­surance is es­sen­tial: No­body ever ex­pects bad things to hap­pen, es­pe­cially when you are first start­ing your home buy­ing jour­ney with that spe­cial some­one. That said, ac­ci­dents do hap­pen, so it is im­por­tant to have both your life and home prop­erly in­sured. A Mort­gage Choice bro­ker can pro­vide you with more in­for­ma­tion.

Co-own­er­ship agree­ment: Not ev­ery­one pur­chases prop­erty with their part­ner or spouse; many buy with friends, fam­ily and col­leagues. If you’re think­ing of buy­ing in co-own­er­ship with an­other, an agree­ment should be drawn up as a corner­stone le­gal doc­u­ment for your in­vest­ment. This will set out the roles and re­spon­si­bil­i­ties of each co-owner and deal with all the im­por­tant is­sues up­front, like what hap­pens if one party wants to sell. Whether you are buy­ing with a spouse/part­ner or in co-own­er­ship with a friend, fam­ily mem­ber or col­league, pur­chas­ing prop­erty is an in­cred­i­ble mile­stone. And, pro­vided ev­ery­thing is set up well, pur­chas­ing prop­erty with a sig­nif­i­cant other can be both en­joy­able and prof­itable. Af­ter a pe­riod of time, you and the other party/ies may be able to make a healthy gain from the ini­tial in­vest­ment and you could even use the cap­i­tal or eq­uity to buy your next prop­erty. * The Mort­gage Choice 2013 Fu­ture First Homebuyer/Re­cent First Home­owner Sur­vey of 1000 Aus­tralians who were look­ing to pur­chase their first home in the next two years or who bought their first home in the last two years ran on­line in Septem­ber 2013.

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