Buying property with friends or family

March 10, 2016
Melissa McDougall

Now’s the time to take advantage of low interest rates, and if you’re struggling to pull together a purchase deposit, the solution could lie in banding together with friends or family.

Buying as part of a group, be it one other person or as part of a larger syndicate, boosts your buying power and helps make the costs of owning a property more manageable.

But it pays to set some clear ground rules. There’s a lot at stake, and it’s critical for everyone to agree on key issues like where to buy, the type of property, and whether it will be your home or a rental investment.

Have a co-ownership agreement drafted

Think ahead to work out how you and your co-buyers will handle all the foreseeable issues that could impact your shared property experience, like what happens when one person wants to sell, or who decides on the tenant or property manager. Ask your solicitor to draft a formal co-ownership agreement that sets everything out in writing. It could save you considerable hassle and expense later on.

Lenders cater for this growing trend

When it comes to funding your shared property, some lenders offer loan products designed specifically for family or friends buying together but most have lending options suitable for co-buyers.
This is an area where we can help: offering you and your co-buyers a selection of loans that let you achieve your combined goals.

Call us today on 03 9748 7999 for expert advice on how co-buying can help you achieve your property goals.

Posted in: Tips

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