Hi,
I am looking at buying a property with a friend that lives in Perth (i live in Sydney).
We are looking at putting in $150K each and buying a house in the north/central beaches area and sitting on it for a few years and see how it increases in capital growth.
Any advice on the best way to set up the agreement and possible pitfalls to avoid. Joint tenacy v’s Tenants in Common? Any recommendations at all?
We will definately be formalising an agreement with a solicitor.
Thanks,
Steve.Steve,
First off, I’m NOT a legal adviser so this is all opinion – fair enough?
As I understand it, if you set it up as Joint Tenants, the ownership will be 50/50 – but, on the death of one, the title goes to the surviving member (and this might not suit a couple of friends).
So, tenants in common might be preferable as I believe this might allow you (or your friend) to have their portion to be assigned to another party in the event of their (or your) death.
You said the right words though – seek legal knowledge over the whole deal. BTW, was the North Coast relating to Sydney, or Perth?
Benny
Only go joint tenants if you are planning to marry your friend. That means that if one of the partners dies, the title expands to the surviving partner and they own the whole lot.
Tenants in common means that you have one half each and you could leave that half to whoever you want in a will or sell it at anytime to anyone else.
a good solicior should be advising you to go tenants in common with a friend!
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
[email protected]
phone 0412 437 582Thanks everyone for your comments already!
We will probably go as Tenants In Common. The property that we have put an offer on is in Padbury.
What are the best ways of dealing with the scenario that someone wants to sell and the other doesn’t?
you can do that if you are tenants in common. but ask your solicitor, i dont claim to be one!
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
[email protected]
phone 0412 437 582
You must be logged in to reply to this topic. If you don't have an account, you can register here.
