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 sharing costs. While this makes homeownership more accessible, it carries risks like joint liability for the entire mortgage and linked credit records.
A formal Property Sharing Agreement, drafted by a lawyer, is essential and often required by lenders. This document should detail contributions, exit strategies, and use a "tenancy in common" structure. A mortgage broker can help navigate lending options.
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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