Whilst all of us would love to have an impressive property investment portfolio to retire on, many people just can’t get enough equity together to buy their first property to start to build their private wealth portfolio.
If you find yourself in this situation perhaps think about purchasing an investment property to share with a close relative or trusted friend.
At the moment interest rates are still low and good deals are still being offered by the banks and in most cases having two or more people on a loan application will increase the chances of receiving a finance approval.
Whilst there are many benefits to sharing an investment property, not the least of which is reducing tax with investment deductions, diligence should be exercised to arranging clear documentation with a lawyer to protect each party in the event of circumstances changing and the property needing to be either sold outright or one or other of the parties wishing to buy the other party’s share. These types of agreements will outline the steps to resolve most issues which may arise due to unforeseen circumstances and will provide all parties with an agreeable exit strategy should the need arise.
Ultimately, buying a property with a family member or close friend could be the first step to securing your first investment property and help you to build your property portfolio sooner.