Getting into the real estate market seems to be getting tougher as median house prices continue to rise. As someone in their early 20s who does not have a partner at this stage, co-owning a property with dad seems like a great idea right now. You get the advantage of buying a place where your money works for you rather than a landlord, you can hang up pictures on the walls without asking permission, and you get your foot in the property market. However, before you and dear old dad rush off to the real estate agent's office to browse the books, consider these thoughts first.
Resale expectations
It is understandable that in your 20s you've got plenty of life left to live, but your dad may not be too far off retirement depending on his current age. Once he does retire, does he expect to sell the home before swanning off to join the other Grey Nomads on the caravan trail?
Make sure before you put an offer in on any property that you have talked to dad about how long he expects to own the home. That way, you don't get any surprises if he announces he wants out of the ownership earlier than you do.
Have a buyout plan
If dad does decide he wants to liquidate his money from the home before you are ready to move on, do you have a buyout plan in place? Before the property is purchased, talk to a financial advisor about what options you have to raise money if your dad wanted to sell early.
You must have a legally binding co-ownership agreement drawn up by the lawyer, so you don't end up in court fighting with your dad if one of you wants to leave the property permanently.
Location disagreements
Finally, you and dad may have issues deciding where to buy because you have different needs from the property. For example, if you both want to be close to your jobs but you work in different directions, which is the fairest way to decide where to buy? Talk about your individual needs with your real estate agent so they can make suggestions about which locales work best for both of you.
Buying a house with dad is a fantastic way to get off the home rental train, so talk lots first about your expectations and then get house hunting.
Share30 October 2017
Are you thinking about quitting your corporate job and moving to the country to keep chickens and enjoy the view? Are you tired of small towns and ready to trade your land for a charming house in the city? Are you happy where you are but just need a small change? Then, you are in the right place. Although all of those situations are vastly different, this blog aims to cover them all. Hi. My name is Melissa. Over the years, I've lived all over the country, and I've closely followed the real estate market every place I've been. This blog is the culmination of my experiences. I hope you like it.