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Anyone co-owned a house


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#1 -Sophie-

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Posted 28 April 2010 - 08:29 PM

With the cost of a house rising steadily out of our reach we are looking at other options.

Hubby has suggested that we look into buying a house with another person/couple.

I am looking for experiences, info and any helpful hints.

Thanks
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#2 AK2

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Posted 28 April 2010 - 08:55 PM

I worked for a guy who ran an investment company, he co-owned properties with investors, and it got really messy from time to time- like when one wanted to sell and one didn't, when something went wrong with the property and one couple thought it need replacing and other thought it just needed repairing- lots of good communication was necessary!

I've never done it not in a formal situation, but I'd want a very very tight contract drawn out, and to find co-owners that I could communicate easily with.

#3 kimba80

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Posted 28 April 2010 - 09:02 PM

Hi, I looked into it years ago and my mortgage broker said that each applicant has to be able to fund the entire mortgage amount, in case the partner "fell thru" and you were left with the mortgage payments. You may want to check on this now tho, it is old advice.

I agree with Amy , definately look at getting a formal written legal agreement written up covering all possible scenarios, that way it is well and truly agreed to prior to the purchase. There has to be property lawyers that will advise you.

Good luck, Kimba
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#4 beachgurl

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Posted 28 April 2010 - 09:17 PM

As you will both own the property, you are also jointly responsible for the loan. If one person is in arrears then the other will have to make up the shortfall or you'll both end up with bad credit ratings.

While it is not necessary these days to both have sufficient borrowing capacity to cover the loan, any future loans that you take while still owning that property will have to include the entire debt. In cases where you jointly own an investment property, your liabilty on the property will be for the entire loan amount but you can only use half if the rental income as you only receive that half as your own income.

Like others have said, it can get really messy. Have you thought about buying something small or further out of town than you want? Live in it for 6 months to claim first home owners grant, then rent it out. Gets you into the market and you can sell down the track when you make a profit and use that deposit for a bigger place/location you wish to live.

#5 indigo

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Posted 01 May 2010 - 02:03 PM

You can classify the house as 'partners in trust' and then you're separate entities and your interests are kept secular.
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