How can co-ownership help Australians?
When you google co-ownership, the definition from Investopedia is the first result to come up. It reads, “A co-owner is an individual or group that shares ownership in an asset with another individual or group. Each co-owner owns a percentage of the asset, although the amount may vary according to the ownership agreement.” This is a great way to get started in property ownership in Australia.
Property market prices are continuing to rise and a lot of individuals are having a hard time getting their foot in the property ladder. People are afraid to take out a huge home loan and go out of their budget. So, they turn to co-ownership and invest in a joint property ownership structure.
What is property co-ownership?
It is basically where two or more people pool their resources and combine their borrowing power to purchase and own a property together. And with rising property prices, Australians are having difficulties owning a property so they welcome the idea to buy one with someone. Co-owning a property can be done with a spouse, a friend, a family member, or a fellow investor you meet here in Property Mates.
What’s good with co-ownership?
We all know that buying a home or a property investment is exciting. All the more when doing it with a mate! So here are some good things with co-ownership:
- You can stay within your budget and still own your first home.
- You can avoid taking out that huge home loan, partner with people, and buy a property.
- It’s the fastest way to get your foot on the property ladder.
- You can split costs on the property.
- You can split the earnings of the property (if you guys opt to rent the place out)
What’s not good with co-ownership?
Although buying a home or a property investment with someone can be exciting, there are still some things to consider.
- There will be some disagreements and disputes that will happen
- Before buying a property together, you need to be on the same page with everyone that will be part of the co-ownership.
- You have to agree on things once the property is bought. Like splitting costs, rent,ing or selling your share.
Where’s the legal help?
Co-ownership sounds fun and exciting but of course, people need help with co-ownership property agreements, reviews of sales contracts, due diligence on the property title, and the transfer of the property. Property Mates made it easy to book a consultation and chat with a property law firm (Sutton Laurance King Lawyers) to help with your conveyancing transactions.
How does Property Mates help?
Property mates is Australia’s first digital platform that makes it easy to buy or sell a portion of the property – from a 1% stake to 100% ownership. We promote co-ownership and help investors connect and buy property together. This platform is for everyone in the Real Estate industry be it buyers, sellers, property agents, buyers agents, REITs, etc.
There is nothing wrong with starting small and using small steps to get to your dream home. Your first property investment and your dream house don’t need to be the same! Take small steps to climb up the property ladder and in this way, you’d be able to make progress towards your goal.