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PPG_Blog_Jan_image 4_buying property with friends

Property investing with friends or family can sometimes be fraught with danger. What if one party wants to exit the deal early? How will property repairs be paid for? What if someone is made redundant and can no longer finance the agreement? What if there’s a falling out? These are all important considerations, made more complex through co-ownership. With that said however, buying property with someone else can be an extremely profitable and stress free process if a careful plan is in place and all parties are fully informed.

If you’re ready to take advantage of the benefits of co-ownership, it’s important to get a legal expert to make sure the process goes smoothly. A co-ownership agreement is a legal document which sets out the rights and responsibilities of each person with a share in the property. It deals with all the important issues upfront, like what happens when one person wants to sell their share, when someone defaults on their mortgage payments and more. Most importantly, a co-ownership agreement is legally binding for each of the co-owners, this ensures there are no legal hassles at some point further down the track.

Co-owners can still take advantage of the federal and state governments’ various bonus schemes including the First Home Owners Grant, First Home Saver Accounts and exceptions to stamp duty. The amount saved depends on your individual situation and where you are purchasing property.

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