Buying a property is likely one of the most expensive things you will do in your lifetime. Not everyone has the luxury of having a deposit immediately to hand and it is for this reason more and more people opt for buying a property with friends to secure the investment property they want.
In order to minimise some of the stress and emotion that comes with selling, buyers are teaming up with siblings, parents and even good friends to share the financial investment. Even the best laid plans need firm agreement in place – especially when finances are involved, and even more so when you have a personal connection with the person you are looking to invest with.
Strictly business, not personal
To facilitate a smooth sale, negotiate an agreement that works to benefit all parties and use the local resources at their fingertips. For example, a real estate agent can ‘match make’ investors with quality let-able properties they have on their listings and then manage the leasing agreement once bought. They will also advise vendors how to make their property attractive to investor buyers down the line by keeping the look neutral and appealing to all sectors.
You can make the most of your combined purchasing power by buying property in areas that people want to live with high demand. By teaming up with a great agent, buyers are ready to market the property at any time to the right demographic to secure the best rent, or later along the line, selling price. Regardless of your financial position and the partnerships you form, clear communication is vital at every touch point throughout the process. It is critical that all buyers are aware of their position – regardless of what may happen in the future. If one buyer should want to sell their portion of the investment to free up funds in future endeavours; everyone is on the same page.
As a lifelong resident of Melbourne’s Bayside suburbs, it was no surprise that Paul Bond chose to pursue his passion for property by commencing his real estate career in one of Victoria’s most competitive markets. Indeed, having spent the past 12 years building an enviable reputation as one of the Bayside suburbs’ most successful sales consultants before joining Hodges as a Director, many Bayside property owners are more than pleased he chose to follow his heart when he did.