For many young Australian’s who can’t afford to buy a house on their own, they use a strategy known as co-borrowing; essentially using a friend, relative or partner to increase their ‘buying-power’.
When looking at co-borrowing, the following items should be considered:
- How strong is the relationship between you and the co-borrower?
- Do you have a contracted agreement that benefits, and protects, both you of?
- Does your contract outline things like maintence, payment for damage and renovation?
- What happens if one co-owner want to sell up?
- Does your contract protect you if the other co-owner defaults on their loan?
There are many pros and cons to co-borrowing, but the key to making it a successful venture is to know and trust the person you are borrowing with!