Rising property prices and ever increasing rental costs continue to push home ownership into 'unaffordable' territory for many people. As a result many people are finding that co-ownership is the way to go in order to meet borrowing criteria which can be difficult when trying to purchase a home on your own.
Essentially, co-ownership means buying a home with others such as a partner, friends, family or colleagues who have a similar goal to reap significant financial gain.
By pooling funds for the deposit and splitting the cost of the property & other associated expenses you can noticeably reduce expected repayments and therefore increase your borrowing power as a co-owner as opposed to going it solo.
Depending on whether all parties choose to live in the property or earn income by renting it out concessions and grants along with tax breaks & any other possible outcomes - both negative & poistive - of an investment need to be taken into account.
The important factors to remember when enetring into co-ownership is that the purchase can be structured to help protect both parties and that there are loans out there specifically designed to protect the interests of the property owners should their relationship/situation change. It is vital that you trust the people you are investing with and that you draw up a co-ownership agreement as part of your legal documents to ensure all parties understand their roles & responsibilities and to address important issues upfront such as if one party wishes to sell.
