Buying Property with a Friend
Should you buy a property with a friend?
There are many benefits of entering the property market with someone. You have someone else to assist you with the responsibility of a deposit and repayments, and you may have complementary sets of skills and knowledge that supports the investment and management process. That's not to say that buying a property with someone, whether it's a spouse, business partner, or relative, is not downside. If you're considering buying an investment property with a partner, you'll need to do certain stuff to make sure you're both satisfied with the deal. Here are two important things to consider when buying a property with a friend.
Thinking about the future
Buying a property is an investment in the long term. You need to find a property investment with your friend as a long-term investment with most loan terms around the 30-year mark. When you purchase a property as an investment with a friend, you will need to be up front and get out of the way the awkward conversations early. Which happens, for example, if one of you decides to liquidate its part of the property? You may choose to sell the house in this case, or the other person buys the other side. These are major financial decisions, so you need to think about all possible scenarios that can be challenging and discuss how you would handle them before you commit to a property together.
Make sure you are both clear about the loan
Even if you own half of a property officially, you still have responsibility for the entire loan. This is because every person listed as a property owner is responsible for the entire loan if another party is unable to pay their mortgage share. This is a crucial issue that needs to be considered, and you need to make sure that you do your due diligence to ensure that the other party can pay their loan section.
Buying an investment property with a partner can be a perfect move to help you build wealth with someone you already love and trust and work on something different. Nonetheless, you need to be careful about how to arrange everything from the process of study and review, buying the property, to find out what will happen if one of you decides to liquidate their investment in the estate. Make sure that both you and your friend are speaking to your trusted attorneys and finance professionals to ensure that everything is planned before you start buying a property together.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle & Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or www.nobullrealestate.com.au