Shared Equity

If your thinking of buying a property and know that you just can’t do it alone, have a look at this option.

Team up with your friends……
Commonwealth Bank has released their new product called “Property Share”. This product allows friends and family to purchase a house together but with clearly defined ownership.
How this works is, say two friends want to purchase a house for $450,000 and they each had $25,000 deposit, they would then get two separate loans of $200,000 each. This allows them to keep their finances separate and pay the loan as they choose. If one friend gets into trouble and defaults it means the other friend will be responsible too so keep that in mind.

If the property is your first you can still get the First home owners grant but it will only be one payment of $7000, not one each.

You don’t have to use a product like this as long as you and your buddy have agreements in place and have had some legal advice, you can apply for most loans.

So why not think about this option to enable you to get into the market.

If you would like any further advice please leave your details in our quick contact.