Thursday, March 31, 2011
Struggling first time buyers are increasingly finding it easier
to get on to the property ladder if they buy a home with friends or
family.
But with a house likely to be the biggest purchase of a
lifetime, our advice is that it is important to get it right from
the start
Peter Bolton King, Chief Executive of the NAEA, said of joint
ownership, "At a time when a lack of mortgage finance is hindering
first time buyers, opting to buy with a friend or relative can
represent a sensible way of getting into the market."
"Twice the number of bedrooms doesn't always mean twice the
cost, so sharing the price of a home, and the deposit - as well as
bills and maintenance costs - can make real financial sense.
Importantly, both owners don't necessarily need to live in the
property - a person living in London could invest in a town with
lower house prices with a friend who lives there, and rent out the
second bedroom."
"However, for anyone considering entering into a joint ownership
I would stress the importance of a transparent, open relationship
between all parties involved to ensure a smooth purchase and
ownership process. Remember, this may be your home, but it's also a
business transaction and one of the biggest decisions you'll ever
take."
For more information, please read our guide to Buying a House With
Friends And Family