Aspiring Law
19 May 2024, 8:00 PM
New Zealand properties are now valued at seven times the average household income. In fact, last year, mortgage repayments accounted for a massive 49 percent of Kiwi household’s gross annual income1.
Kiwis are being locked out of home ownership because it is simply unaffordable.
But there is hope. Buying a house with family or friends can be a great way of getting yourself onto the property ladder. Co-ownership or shared ownership is becoming increasingly common and can give each person a distinct share in the property that you couldn’t otherwise afford on your own.
Choose the person or people wisely though and it’s critical that you get a property sharing agreement drawn up.
Before jumping in, you’ll need to think about what each co-owner’s share in the property will be. For example, do you want equal shares? Will you all put in the same deposit? Maybe the share of the property will be proportional to the size of each co-owner’s deposit?
Property Sharing Agreements should always be drawn up on a case-by-case basis, but they will typically cover some or all of these areas.
Depending on where you live in New Zealand, property prices can double every 10 to 12 years, so home ownership certainly has its rewards. If you think a property sharing arrangement might be right for you, get in touch, we can help you get started.
(1.last quarter of 2023, Corelogic)
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