What do you do throughout the process?
Deciding to begin looking at purchasing your first home is an exciting time, but it is easy to feel overwhelmed. Locations, property features and prices are only some of the considerations that can occupy a large proportion of your time when embarking on the property hunt for the first time. Don’t worry though; there are ways to simplify the process. Buyer’s advocates are a beneficial option for first time buyers. Skilled buyer advocates are qualified real estate agents who can help source properties and get you the best possible purchase price. A good banker or mortgage broker is also an asset to help your work out your budget and clarify how your repayments may differ to renting.
If owning a property on your own isn’t a financially viable option, pairing together with a friend or family member may help your dreams become a reality.
Teaming together to purchase a property is often well regarded by banks and financial institutions. Together your borrowing capacity may increase, as suddenly there are two incomes to service a loan compared with just one. Saving for a deposit is also often faster with the contribution of two separate parties, and joint responsibility means less individual payments.
Before you go shopping together to find the perfect ‘welcome’ mat, there are some things you need to consider.
Many people go into joint property ownership with the best of intentions, however it is imperative that both parties are protected. Even the strongest of relationships require a legally binding contract to be in place in case any unforseen circumstances present. Some of the things to include in the contract:
- How long do you plan to hold the property?
- What happens if one person wants to sell and the other doesn’t?
- The cost of maintenance, repairs and improvements
- What happens if one member defaults on the loan?
It may be awkward to bring up the need for a lawyer, but a little bit of discomfort is worth protecting yourself, your property and your future.
Learn how a buyer’s agent can create ease in finding your next home, talk to the friendly team at Wise Real Estate Advice for more info.
3rd of August, 2016. By Mark Ribarsky