Co-owning property with a mate is smart in the current climate, but it's not without risk.
Property prices and their general inaccessibility are ongoing issues for many Australians.
As such, millennials are turning to alternative methods to gain their first step onto the property ladder. One emerging trend enabling their dream is property co-ownership with friends and family. In fact, 31 per cent of Australians surveyed said that they would consider co-buying property with a friend or relative.
Current flatmates or friends are the perfect partners for co-ownership and an ideal scenario for this latest development in property. By combining buying power, the parties involved can halve their deposit and mortgage repayments, or cut their deposit to 33 per cent if they buy with two others.
However, as with any big decision, it’s crucial to understand all the factors involved in co-ownership, as well as considering your co-buyers’ needs to ensure the relationship doesn’t go sour.
David Dawson, CEO and Co-founder of Kohab, and expert on property co-ownership says, “Co-buying property with a friend is a smart idea in the current climate. Despite the close bond between friends, it’s important to have a legal co-ownership agreement drawn up to ensure the safety of both parties and avoid any major fallouts.”
Here David shares his tips for friends considering the co-ownership option:
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