I’m thinking about buying a property with my best friend. What do I need to consider?
Co-buying – also known as shared ownership, joint ownership or co-ownership – is when two or more people decide to spread the financial burden and buy a property together.
Today, parents are buying with their children; siblings are buying together, as are friends, extended family members, even colleagues.
By joining forces, you can afford somewhere bigger, better and sooner than you could alone.
For investors, the obvious advantages include the reduction in capital required, the reduction in other associated costs involved in buying a property – and as a result – the reduced risk, especially when better locations can be made more accessible.
It is important to remember that a mortgage mate, a co-buyer or a co-investor is in essence a partner. There are significant legal and financial obligations to consider and plenty of due diligence is called for.
It is vital that all parties have the same intentions and goals and a legally prepared document – such as a Deed of Trust – is advisable for anyone entering into a co-buying arrangement.
