When it comes to getting on the property ladder, some of us can’t afford to go it alone. Home ownership is becoming a rarity for millennials. Hence why many opt for a joint acquisition.
In some cases, that means buying a place with a partner. Or, you may want to buy with a friend or sibling. Either way, joint acquisitions can be a fantastic way to make property dreams come true. But, it’s important to note you should also be careful with finances.
Though this kind of purchase is becoming more common, the legal footing is still shaky. As such, you could lose a lot of money if a deal goes wrong, or your housemate moves on down the line. Which is why you should take the following steps to cover yourself.
Keep Things Even
If you already have the money, it may be tempting to jump in and pay more than the other person. Why wait for them to save up when you could get going straight away?
After all, the chances are that you’ve already had to wait a long time for your savings to grow! But, as frustrating as it can be, it’s important to keep things fair with how much money you each put forward. In many ways, this is all about starting as you mean to go on.
This NEEDS to be an utterly joint journey. If you put more money forward, things get confusing when it comes time to sell. On top of which, resentment could bubble under the surface this way.
Does the house belong to you more because you put the most forward? Avoid the issue altogether by making it fair.
Agree On a Budget
The chances are that you’ll both head off to look at property listings from companies like The Bartikoski Group in your free time. There’s nothing wrong with that.
After all, this is an exciting time, and it’s likely all you can think about. But, before you head off and do private searches, it’s crucial you agree on a budget.
This way, you won’t fall in love with something the other person can’t afford, and your finances won’t come under fire when they do the same. Bear in mind, too, that you will need money left for legal fees and estate agent payments.
Sign an Agreement
You may be tempted to keep things casual, but that’s a mistake you don’t want to make. Never underestimate the importance of signing a legal document before proceeding.
You could draw this up between you, and get your lawyer to witness the signing. It merely covers you if things do fall apart. This way, there’s no chance the other person can turn around and try to get more than their fair share of the house value.
You do away with this risk in a significant way by keeping things even, but people do strange things when it comes to money. Having this document to back you up will ensure that doesn’t happen.