As house prices continue to rise, particularly in Auckland and Wellington, it is becoming increasingly difficult for single people to purchase a dwelling.
One hundred percent, no deposit mortgages, or even 95% low deposit home loans have all gone.
Another alternative for two people, be they friends or siblings, is to form a property partnership.
This way you are pooling two deposits, two incomes and two people to work on the property. It is important that these types of arrangements are formalised with a partnership agreement. This discusses such things as the duration of the partnership and how it will be dissolved. The advantage is that if a property is held for say 5 years and has appreciated by 40% when it is sold, each partner will walk away with considerably more money than they started with – which will make it easier for them to purchase their next property.
Source:
William Cairns
James Lockie
