How to buy a house with friends
New research shows Melburnians are increasingly teaming up with friends and family to break into Melbourne’s booming property market.
The study by realestate.com.au shows two-thirds of Melburnians feel affordability is an issue when buying a home. And, as a result, many are opting to co-buy with family and friends to break into the market.
The good news is that co-buying has a number of benefits – namely, the cost for a deposit and mortgage repayments will significantly decrease when it’s split two or more ways.
Additionally, equity earnt on the home during ownership will also increase your chances of buying a home of your own down the track.
And the other benefit? Co-buying may also put you in better financial stead than if you were to rent – the cost of which can sometimes equal or even exceed the cost of mortgage repayments.
But be wary – there are some pitfalls to take into account. It’s important to have plenty of trust between you and the person you’re buying with, and ensure you’re both willing to commit long enough to avoid any financial losses from getting out too soon.
If you’re considering co-buying a home, getting everything right on paper is paramount – speak with a solicitor who can draw up a legal contract to outline your obligations and expectations. Taking these steps now will pay off in the long run.