Why Buy With Others?
The Basics
Are you tired of paying rent but can’t afford to buy your own home? Are you itching to get on the property ladder but find your finances are holding you back? Are you still living at home?
Spiraling house prices are making it more difficult for Australians to purchase their first home. If you are stuck in rental accommodation there are few things more annoying than listening to smug homeowners bragging about how much their property has increased in value. Whether living alone or sharing a rented property, its hard to avoid comments about how much better off you’d be if you bought. This is far easier said than done. If you are single, on an average salary, it can be almost impossible to get the deposit together let alone borrow a big enough loan to pay for a property.
First time buyers have been almost priced out of the market and are struggling to get on the property ladder. Sales to first home buyers are at historic lows. Property prices keep going up and up leaving most people with little hope of being able to hop on the property ladder.
Well you have an option now. One way out of the rental trap is to pool your resources with someone else you will be able to achieve your dream. Join forces with family, siblings, friends, flat mates, partners or other co-owners and realize your dream.
How co-buying can help you?
Since house prices continue to head skyward, shareproperty.com.au is the answer to those of you looking at realizing your dream of owning your own home. Post your details online and find a "mortgage buddy". It's a short term commitment for a long term gain. For first home buyers its your first step up the property ladder. Share the finance and your dream becomes a reality. For holiday home buyers - you will be able to afford that dream home by the beach by sharing the cost. For investors/property developers you can meet other co-buyers who are looking to increase their property portfolios. By pooling your resources you have more to spend and you increase your buying power. You can afford to buy a bigger place. You can split the costs of buying and running a home eg, stamp fees, conveyancing costs, fees etc. You would be able to afford to buy a property far sooner than you would have on your own thereby eventually profiting from rising property prices.
Who co-buys
Anyone who wants to buy but can't afford it eg, 1st home buyers, holiday home buyers, investors, property developers, couples who have split. Anyone who cannot afford to buy alone, but through co buying can buy a property, improve it and increase its market value. Anyone who cannot afford to buy inner city but through co-buying would be able to afford their location of choice as well as a bigger place.
Pros and cons of co buying
The pros and cons of buying together are many:
- If you buy together you split the loan/repayments and you will have more financial muscle and a bigger loan. When you buy with others you multiply your buying power. You may not have been able to get on the property ladder by yourself but by joining forces with others you will be able to afford your first home. A bigger loan can be the difference between an apartment and a four bedroom house. If there are three of you buying a four bed roomed place you could rent out the fourth room and that could go towards the mortgage.
- Financial strength widens your choice of area and you may be able to afford inner city. The nicer the home and the better the location the better the investment it is. Buy in a great location and see your investment double.
- Joint savings go towards a bigger deposit which reduces interest on repayments. Build equity in your own home
- When you buy with others you make huge savings by dividing the costs of buying and owning property e.g., you split the stamp duty, conveyancing costs, mortgage fees and payments, repairs, maintenance costs etc.
- Buying a property can be daunting at the very least but sharing the experience with someone else who will go through it all with you gives you that extra confidence.
- Buy years sooner than you would have if you were buying on your own.
- What if you don’t get on with your co-buyers – people have been buying property with friends and family for years, but buying with a stranger can be daunting. That is why it is important that you have everything in writing. Contact as many potential co-buyers before deciding on who is the correct one. Take as much time as you feel necessary to make the decision. You may consider renting with them while you are looking for a suitable property to buy. It is important that you are honest and open with your potential co-buyers and discuss all your options and concerns. Whether you are buying with friends, family or a stranger you should enter into a co-buyer agreement. You may want to provide your potential co-buyer with your credit report as well as a police report to establish that you do not have a criminal record and these are documents which you may want from your potential co-buyers as well. Remember the advantages of co-buying out weight the disadvantages. If you have any queries please email us.
Other useful info for meeting your co buyer online
The most important thing when considering entering into a share property arrangements is to be honest with everybody. Get to know potential co-buyers through the shareproperty emailing system. Do not give out your personal details such as your address, telephone number straight away.
Once you have identified a person you may like to co-buy with, you may wish to speak with them. It is best to give your mobile number as it is harder to track your personal details.
If you then decide you want to meet up and discuss the matter further arrange to meet at a mutually convenient place. You may wish to take a friend with you who you feel may be able to give you an honest opinion of your potential co-buyer. If upon meeting a person you feel you do not wish to pursue the matter it is best to be upfront and honest and say so. If you feel you wish to pursue the matter you may wish to arrange another meeting.
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