Getting into the property market can be tough and hence it is not uncommon to enter into property co-ownership arrangement with someone.
Co-ownership of property means when two or more people own a home together. Most people decide to buy with their partner, but there are people who decides to co-own a property with their siblings, friends, or parents.
Like any other home buying strategies, this too have pros and cons.
Some of the benefits of property co-ownership includes splitting of upfront expenses as you don’t have to fork out all the expenses, you are able to enter the property market sooner, you are able to afford a better property due to bigger budget and your ongoing expenses are also shared.
On the other hand, you might come across some disagreements and disputes around the type of property to be purchased, and the type of renovations to be done in future. Also consider the changes in one borrower’s financial situation can lead to change in plans.
It is recommended to secure some legal advice before co-owning a property. Consider speaking with a property lawyer or conveyancer to understand the type of co-ownership that could be suitable to you – either buying as tenants in common or joint tenancy.
So, what’s the process?
Once you have an understanding of the type of co-ownership you want, you look for a home. We can start looking at all the buyers' finances to find a suitable loan option for you.
Lastly, we would like to reiterate that although property co-ownership can be helpful, it is highly suggested you ensure you have sought right legal advice.