Purchasing property with a significant other is a dream that many people share. Along with marriage, and having children, it’s common for couples to want a place in the property market.
A shared dream owning property helps couples get into the market sooner. Whether purchasing with a partner, spouse, friend or family member, it’s becoming an increasingly popular way for Australians to enter the property market.
Purchasing in a partnership makes ownership more affordable. It allows potential buyers to pool their money for a deposit and use their combined borrowing power to secure the home loan. Co-owning a property also means you can split the cost of all associated expenses, so your repayments will be sizably less than if you were purchasing on your own.
So if purchasing your dream home is the next step in your partnership, here are some things to take note of before you jump in head first:
- Know what both parties want: purchasing property with someone else means both parties’ needs must be considered. Are you both planning to live in the property? Are you looking to earn income by renting part or all of it out? Grants and concessions, tax breaks and other possible outcomes – both negative and positive – of the investment need to be taken into account.
- Ensure you are insured: when first starting your journey as a new home owner, no one ever expects bad things will happen. That being said, accidents do happen and it’s crucial that you have your home and life property insured. We can provide more information on this, just let us know in our meeting or give us a call!
- Co-ownership agreement: not everyone buys property with a partner or spouse; many people purchase with family, friends and even colleagues. If buying in a co-ownership is something you’re contemplating, it’s important you get an agreement drawn up as a cornerstone legal document in your joint investment. This will detail the responsibilities or each co-owner, and detail important issues upfront, like what happens if one party wants to sell.
Purchasing property is an incredible milestone, whether it be with a friend, family member, colleague or your loved one. Provided everything is set up well, co-ownership of a property can be both a profitable and enjoyable experience. After owning for a period of time, all parties involved may be able to make healthy gains on your initial investment, and even consider using the capital or equity to buy your next property.
Organise a meeting with one of our expert brokers in our beautiful Woolloomooloo office, and let us help you and your partner begin your property portfolio! 02 9358 4855