Buying a property with family or friends can have many advantages.
Co-ownership allows you to get a foot on the property ladder by combining your borrowing power and splitting the cost of buying the property.
You can also split all the fees that come with buying a home (stamp duty, legal, inspections etc.) and there is a good chance you’ll be able to reduce the length of the mortgage and own (your half) of the property faster.
While improved housing affordability, stable property prices and lower than usual interest rates have made shared property purchases more uncommon in recent times, there are still plenty of people who are opting to co-own.
John Symond says that when it comes to buying property, timing is everything and it can be a better idea to buy with someone else than to not buy at all.
“If you see an opportunity where prices have come off, it may be a good idea to buy with a friend or relative if you can’t afford to buy yourself.”
“But you really do need professional advice to do this.”
Symond highlights the many things to consider if you are serious about co-ownership.
“Get advice with structuring the purchase. What happens if your friend or relative changes their mind somewhere down the line? What happens if one of you wants to keep the property and one wants to sell? Or if one wants to rent and the other wants to move in?
“There are a lot of scenarios to consider and you really do need to tick all the boxes. If you are interested, get professional advice from an Aussie Broker first. Make sure that you can go forward with confidence and end up with a very strong asset!”