New ways to Invest in your own Home

In the modern economic climate of Australia today, it has become increasingly more difficult for young people to make the leap and purchase a first home. However, more and more young couples and individuals are turning to alternative methods of financing that important first step. One of the most common ways that first-time homebuyers are finding as the best method of buying a home is by pursuing co-ownership, oftentimes with the assistance of their parents.

New Paths towards Stable Co-Ownership

First Home Buyers Grant

While pursuing co-ownership between parents and children can alleviate some of the stress of that first-time home owners have to deal with, it also introduces a whole new set of challenges. However, one company based in Sydney called MoveUp2, has designed an innovative new way to pursue co-ownership. MoveUp2 is a part of a residential property trust, which allows parents to enter into a residential property investment fund that is spread across properties other than just their children’s.

This structure helps remove some of the immediate risks parents face through co-ownership with just their children, and also provided a framework for investors to see a return on their investment. Finally, and perhaps most importantly, it provided a solid framework for family member to help out their relatives when they need to purchase a home.

Traditional Co-Ownership still has Plenty of Potential

While innovative new schemes such as MoveUp2 offer a lot of potential, industry experts say that more traditional co-ownership arrangements were becoming much more common and accepted across the country. One industry expert described the arrangement as nothing more than joint venture investment, which is something that happens every day in the business world.

If you do decide to pursue co-ownership, however, it is important that some aspect of it be formalised. A solicitor should be enlisted to document everything that needs to be decided in advance, and everything should be recorded on a written document, with contributions decided ahead of time and worst case scenarios accounted for.

As long as everything is handled in an appropriate and professional manner, however, co-ownership is a great way for first time home buyers to acquire the property they want.

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