Buying guide
Alternative homeownership: Buying with family or friends
Homeownership might not be so far from reach.
6 June 2023
AI summary
Buying a home with friends or family is a popular way for Kiwis to enter the property market by pooling incomes and KiwiSaver funds. This shares the initial purchase price and ongoing costs like rates and insurance.
Key risks include joint liability for the entire mortgage and linked credit records. A formal Property Sharing Agreement, drafted by a lawyer, is essential. It outlines contributions, exit strategies, and dispute resolution. Not all banks lend to groups, so consult a mortgage broker for guidance.
What you’ll learn:
Pros and cons of buying a house with friends or family
Initial questions to consider:
Tenancy in Common vs Joint Tenancy
Property Sharing Agreements
Not all banks will lend to a group of friends
Author
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