Entering the property market with someone has many perks. You’ve got someone else to help you bear the burden of a deposit and repayments, plus you may have complementary skill sets and knowledge that makes the investment and management process easier. That’s not to say that there aren’t downsides whether it’s a spouse, business partner or friend.
Even if you technically own half of a property, you are still responsible for the whole loan. This is because each person listed as an owner of the property is responsible for the entire loan if another party can’t pay their share of the mortgage.
Buying an investment property with a friend can be an excellent move to help you build wealth and work on something new with someone you already like and trust. You do, however, need to be diligent about how you organise everything from the research and inspection process, buying the property, to figuring out what will happen if one of you wants to liquidate their investment in the property.
Make sure you and your friend both speak to your trusted lawyers and finance professionals to make sure everything is organised before you embark on purchasing a property together.
If you have any questions, or need clarification on any of the above, please contact Anna Marten, our Head of Property Management, on 9651 1666 or anna@guardianrealty.com.au
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