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The price to get into the property market may seem like it is becoming further out of reach for a lot of young Australians, and so an alternative buying pathway for some is to buy a property jointly with a friend or colleague.
Generally when we think of joint property buyers, we think of couples, but in an age where people are marrying later in life or deciding they would prefer to remain single, it is not uncommon for property buyers to decide to enter a joint property agreement with a friend or a business partner.
When buying with someone else (whether they are your partner or not) it is important to decide whether you want to sign a Joint Tenancy or a Tenancy in Common.
In a Joint Tenant arrangement if one party dies, then the joint tenant automatically owns the property even if a will says otherwise. This type of arrangement is generally suited to those in a close relationship.
A Tenancy in Common works a bit differently. In this type of agreement, if someone where to pass away, their share would be inherited by whoever is named in their will. Each owner in a Tenancy in common can also hold smaller or larger shares of a property (it doesn’t need to be 50/50), and transact on their share independently.
A Tenancy in Common is generally recommended for those in a business arrangement, or for friends, looking for options to get into the property market for a lower price.
Before any property is purchased however, you should always gain advice from legal and financial experts to make sure that each party can meet their obligations and that everyone is getting involved in a situation that is in their best interests.
If you have any questions about buying in Liverpool, or about any other property matters, please feel free to contact one of our friendly team at Professionals Paradise Realty today.