Co-owning a property can be a great way to make homeownership more accessible. Here’s a step-by-step guide to getting started:
1. Find a Co-Owner
Look for someone with similar financial goals and lifestyle preferences. Use the online platform The Modern Living.
2. Discuss Expectations
Have open discussions about your expectations regarding the property, including location, type, budget, and long-term plans. Make sure your goals align.
3. Create a Co-Ownership Agreement
Draft a comprehensive co-ownership agreement. This document should outline each party’s financial contributions, ownership percentage, responsibilities, decision-making processes, and exit strategies.
4. Determine Your Budget
Assess your combined finances to determine your budget. Consider all potential expenses, including the deposit, mortgage, maintenance, utilities, and insurance.
5. Get Pre-Approved for a Mortgage
Apply for a mortgage pre-approval to understand how much you can borrow. This step will also show sellers that you’re serious buyers.
6. Start House Hunting
Work with a real estate agent to find properties that meet your criteria. Attend viewings together and discuss the pros and cons of each option.
7. Make an Offer
Once you find a suitable property, make an offer. Negotiate the terms and price with the seller, and ensure both parties agree before proceeding.
8. Conduct Due Diligence
Perform necessary inspections and appraisals to ensure the property is in good condition and valued correctly. Address any issues that arise during this process.
9. Secure Financing
Finalise your mortgage application with your lender. Ensure all necessary documentation is provided and the terms are clearly understood by all co-owners.
10. Close the Deal
Sign the necessary legal documents, including the co-ownership agreement, mortgage agreement, and property title. Pay the down payment and closing costs.
11. Move In
Plan your move and establish routines for living together. Discuss how you’ll share household chores and responsibilities to maintain a harmonious living environment.
12. Regularly Review Finances and Agreements
Schedule regular check-ins to review your finances, budget, and co-ownership agreement. Make adjustments as needed to ensure everything remains fair and transparent.