I’ve been offered to go halves in a property. I’ve done a bit of research and it looks like a pretty good deal. The other party is a real estate professional and knows the industry inside out. Has Ip’s in Sydney too. They just need a partner in this one due to personal reasons.
I’m tempted as the property has a lot of potential. What would be the potential pitfalls. What should I be thinking of as far as legal issues go? Would it be hard to use equity in the future with two party’s involved?Hi Dylan
Only way you could access the equity in a jointly owned property is with the consent of the other party as they will have to sign the mortgage application and other documents.
Also whilst you will only be able to use 50% of the rent (Assuming property is owned as Joint Tenants or Tenant in Common with 50/50 share division) for accessing serviceability regretfully you will also need to use 100% of the liability and this will reduce your borrowing capacity over time.
Richard Taylor | Australia's leading private lender
Thanks for the advise. Looks like I wont be going any further with it then. back to the drawing board.
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