The average cost of a home in Australia might surprise you. one can easily expect it to cost approximately $670,000, and that number is only increasing around 3% to 14% every single year. Pair that with tighter lending restrictions set by banks, and what does that mean to you? Well, it simply means that you're in for a rough time trying to buy a house.
That said, buying a home in the city isn't impossible. Sure, it is hard, but if you know what you're doing, you can ensure that you buy a home that you can actually afford in the city that you prefer!
With that in mind, one of the best ways to buy a property in the city, or anywhere essentially, is to buy it with friends or even siblings.
How Does Buying a Property with Friends or Siblings Work?
It's simple, really. Do you remember when you and your buddies wanted to buy something cool, and you all pooled your money together to get it? Well, the same concept applies to homes! You, your friends, or even your siblings can pool money together to buy a home. That's essentially how it works.
What Are the Benefits of Buying a Property with Friends or Siblings?
There are so many benefits to buying your home with friends or family that they can't all be listed here. However, the major benefits include:
You won't have to worry about paying a major part of your income to your home because you can split the mortgage and then pay off your portion of it over time together.
You'll have someone you trust with money. This is important because you'll be able to trust them to make a payment if you can or cannot. But of course, it would be in your best interest to be able to cover the payments as well.
If you share a house with friends or family, you can save money and live in a comfortable area where you'd normally not be able to afford to. This is because there will be less money spent on bills, for example, leading to more money being saved individually!
Finally, just imagine being able to meet your friends right there in the house rather than having to travel to meet up. Now that's just a fun idea that so many people like.
Are There Any Drawbacks to This?
In any type of transaction, there will always be risks you will face.
In the case of buying a property with friends or siblings, perhaps the biggest risk is that you may not actually end up being tolerable about one another's lifestyle. For instance, you might be the type who sleeps early, but if you have a friend who loves to stay up and watch movies all night long, you may have a problem.
Another problem is perhaps one of the buyers may suddenly be unable to afford the mortgage, or one might want to move away and sell their share of the home.
Of course, these issues can also be mitigated in so many ways, but understanding these risks first will allow you to plan for them in case they occur.
In the end, buying a home with friends or family is not impossible. It's actually relatively easy, as long as you make the right preparations first and understand that it might come with risks. And with that, if you are indeed interested in purchasing a home with friends or siblings, plan the entire process together and make sure everything is written in a contract or agreement. That way should trouble occur, you will always have the writing to fall back to!
Wealthy You is a mortgage company in Sydney offering a large variety of mortgage solutions to meet any financial need. If you are looking for the best mortgage brokers to buy a home, reach out to us today!