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Join forces to buy your home
Co-ownership might just be the solution you’re looking for to gain a foothold in the property market.
With rising interest rates and sky-rocketing property prices pushing affordability to unmanageable
heights for many aspiring home buyers, buying a property may seem like a distant pipedream.
If the prospect of owning a home seems to be slipping from your grasp, take heart – co-owning a property with a family member or close friend might be something for you to consider.
Whether you’re a first-home buyer or seasoned investor, co-ownership has become a sound option for two or more unmarried people looking for a step-up onto the property ladder.
It’s a great way to not only split your mortgage costs but also share in the different responsibilities
and expenses of purchasing a property.
Fool-proofing your deal
Whilst the idea of co-owning a property might appeal to some cash-strapped buyers, there are a number of legal factors to consider before you sign on the dotted line.
Most legal experts advise co-buyers to sign a “co-ownership agreement” or a legal document that outlines the rights and obligations of each person with a stake in the property.
To make sure you’re covered for any legal hiccups
pertaining to your claim on the property, the agreement rubber-stamps each buyer’s responsibility to the purchase, including rules on splitting mortgage repayments, dividing operating
expenses, and the conditions of sale should one party wish to sell out.
Another factor to consider is the amount of money your lender is willing to fork out for your purchase. Tougher rules may apply to tenants-in-common purchases – so remember to read the fine print, and consult your mortgage broker about your financing options!
Lastly, tenants-in-common are often required to be co-borrowers or guarantors for each others’ loans – meaning both parties will be liable for repaying
each other’s loan in the case of a default. Although each party’s liability is limited to the value of the property, lenders may charge
penalty interest payments on the loan if repayments
are not met – resulting in a possible forced sale of your property.
Ensuring your agreement is well planned out is essential to making co-ownership fool-proof for you and your co-buyer – so make sure you seek professional legal advice and talk to Lending Hand Finance to get the full picture.
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Did You Know?
We can organise co-ownership finance to help you get into the property market.
Contact Lending Hand Finance on
1300 850 545 or
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