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% 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% 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 to consider 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. But 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.”
Davids tips for buyers thinking about going down the co-ownership path are:
Know your expectations
Have a co-ownership agreement in place
Make sure you have an exit plan
Do your due diligence
Kohab is a world first digital platform and marketplace for coownership, created with the aim to see more people ultimately owning their own property. Purchasing a property as tenants in common, splitting the title, obtaining the right co-ownership agreement, mortgage and insurances, co-ownership can get people into owning and out of renting. For more information visit www.kohab.com