When it comes to commitment buying a property with your partner may be an even bigger deal than saying I do – and it's certainly more expensive! MoneySmart puts the average price of an Australian wedding at just over $36,000, while a property will probably cost you in excess of $500,000.
But don't let that scare you off. If the time is right, there's no reason why you and your partner shouldn't take the next step and buy a home together. Here are just a few handy tips to help you do just that.
Decide how you'll structure ownership
The first major decision to make when buying property with another is whether to buy as joint tenants or tenants in common. Buying as tenants in common means that you'll both technically own 100 per cent of the property together, meaning if one owner passes the other automatically assumes full ownership.
This is ideal for married couples or those long term relationships, but may not be suitable for new relationships or friends, as in the event of a break up the property may be difficult to split.
For such couples or friends, tenants in common may be the best option. This ownership structure allows each person to own a certain percentage of the property, making it easy to split if one party decides to vacate.
Make sure you're on the same page
When undertaking the lofty challenge of buying a home together it's essential that all parties are on the same page, and know the state of play. It's a great idea to formalise this agreement by printing and signing a document containing all essential agreements. This should answer the following questions:
- What are each parties responsibilities?
- What can the property be used for?
- What happens in the even that one party wants to sell?
- In what proportion will each party receive income and cover costs?
- How will additional decisions about the property be made?
Considering the state of property prices, buying together is an increasingly attractive option.
While this list is a good start, it's by no means exhaustive. If you need help making sure your co-purchase agreement is air-tight, get in touch with a conveyancer for professional advice.
Considering the state of property prices, buying together is an increasingly attractive option for many Australians.
With solid advice, a well thought out plan and a home loan tailored to you, it often works out perfectly for all involved.
For professional and personal advice on the home loan side of things, get in touch with Advantage Finance today.