With all the Valentine’s Day talk that has been around lately, 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.
Focusing on a shared dream of property possession can often help couples get into the market sooner. And 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 66% of New South Wales residents 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.
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.
So if you’re thinking of taking your relationship to the next level 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. As a mortgage broker, I 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 more information contact Richard Windeyer on 1800 01 LOAN or click here to "Book a Meeting"