14 February 2014
Take your relationship to the next level this Valentine’s Day
What to consider when purchasing property with a significant other
With Valentine’s Day just around the corner, 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.
Local Mortgage Choice franchise owner Des Nation says focusing on a shared dream of property possession can often help couples get into the market sooner. According to Des, 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% of Australians plan to buy with a partner, spouse, family member or friend – significantly higher than the 30% who said they would purchase a property on their own,” Des 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,” he 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.
For further information, please contact:
(02) 9833 8177
0412 709 700
or log onto www.mortgagechoice.com.au/des.nation
About the survey
The Mortgage Choice 2013 Future First Homebuyer/Recent First Homeowner Survey of 1,000 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.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice has sourced a home loan for well over 350,000 people since 1992. It works with all manner of property finance borrowers via hundreds of franchises.
The company writes one home loan every 15 minutes in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and providing referrals for risk and general insurances.
Uniquely, Mortgage Choice pays its franchisees the same commission rate for home loans they write, regardless of rate paid by the lender a new customer selects, working in the customer’s best interests to tailor a solution to them.
To cater to the growing needs of our customers, Mortgage Choice soft-launched in October 2012 its new financial planning business. Mortgage Choice Financial Planning will officially launch in FY14.
The company has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Recent recognition: 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited, a fully owned subsidiary of Mortgage Choice, holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.