With home loans getting harder to get approved, one option is often to buy property together with a co-applicant as this will increase the chances of a bond being granted. The article below outlines some very important points to consider when you are not buying alone.
Investing in property ‘together’
http://www.lessor.co.za/2010/11/investing-in-property-together/
Shared ownership of property as a live-in home, holiday residence or ‘To Let’ investment is a viable option to finance your first property or to enter the property investment market. Whether you co-invest with a partner, spouse, friend or family, be sure to construct a solid legal foundation for this relationship.
An attorney should be consulted without hesitation to draw up a contract for every form of shared ownership, regardless of the investors’ relationship. This contract should specify roles, contributions and what should be done in the event that friendships dissolve, couples separate, one party sells, another wants to buy-in or an investor dies. A pre-emption clause ensures that when one party leaves the investment – for whatever reason – theirshare in the property will be offered first to existing shareholders and then to other parties.
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