If you can’t afford to purchase a home on your own, why not consider getting a home loan with close friends or family.
This trend has become increasing popular as many people are trying to take advantage of the first home owners grant boost before it reduces in October, and then cuts out in December.
In today’s economic times, borrowing has changed – most lenders now want to see deposits and a genuine savings history. One way to get into the property market before the boost runs out is to join deposits with a friend or relative.
Co-buying can be a great strategy however a contract is generally a good idea when investing with others. There are things to consider before entering into a joint home loan, for example, if one person defaults then you are both liable – so it is recommended that you receive independent legal advice before making a decision on sharing a home loan.
Also consider how long you might want to own the property, when you might want to sell, what will happen with your home loan if one of you decided to move overseas and then there are issues such as home renovations and insurance to be agreed upon.
If two non-related people (that is not spouse or partner) who are buying their first home jointly to increase their borrowing power apply for the First Home Owners Grant and Boost to buy the same property, only one of them will receive the funds, not both.
Until 30 September 2009, eligible first home buyers will receive an additional $7000 if they purchase an existing home or $14,000 if they buy or build a new home. Between 1st October 2009 and 31st December 2009, the Boost will be halved to $3500 for the purchase of an existing home and $7000 for the purchase of a new home.
|To receive the full Boost amount, contact Australian Lending Centre today on 1300 138 188 as we offer tailored home loan arrangements to help individuals co-own a home.|