A little (property) help from their friends
A new trend to gain entry into the property market will depend on your relationship with family members or friends.
According to the Housing Affordability Sentiment Index report, released this week, “co-buying” is becoming an inexpensive and popular way to purchase property.
The report revealed 72 per cent of Gen Y respondents (aged 25 to 31) would consider buying with a friend or family member in order to enter the property market.
This is compared to less than 50 per cent of Baby Boomers and Gen X (aged 32-46) who have been deemed “more conservative” when purchasing property.
Cairns Betta Real Estate principal Clive Abbott said there were pros and cons to buying with a family member or friend.
“The more names on a title, the more complicated things can get down the track,” he said. “People’s circumstances change. It can lead to complications.”
However, Mr Abbott, who has been in the industry for 22 years, said co-buying could be a good option for first home buyers.
“It does help to get them into a property that they might not have been able to buy (by themselves).
“I’d be saying to people to explore all the options.”
He said banks had also set up specialised home loan packages to cater for multiple buyers.
Partner of MacDonnells Law on Grafton St, Matthew Bowen, said the co-buying approach could become a legal minefield if not arranged properly at the time of purchase.
“If you are going to buy a property with a family member or friend you definitely need to get some legal advice to protect your interests,” he said.
“When you do buy with a relative or friend, it’s very important that you enter into a separate agreement which will deal with how you share the costs of ownership.”
This includes the payment of rates, insurance and possible arrangements if one of the owners want to sell or sickness arises.
Would you buy with a friend or family member?
Let us know at www.cairns.com.au
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Trend: Friends and family are joining forces to buy property. Picture: THINKSTOCK