Advice On Getting A House

[alr33x]

Oh right missed the bit about not being on title.

Fk that put ur name down man NO MATTER WHAT!

[R31Nismoid]

  On 12/12/2011 at 5:08 AM, blah_blah said:

Lol whatchu talkin about Alex. I'm sure he knows that, but his talking about possibly buying a house with a friend and having the title

But that was soley dude to not contributing as initial deposit.

Alex just said in numbers what i meant.

Work it out as a % of the deposit vs house purchase price and then an allocation of share/value from there. It's really not difficult.

I'm looking at doing a similar thing with my brother in 2012. It'll be built around not only deposit but also how much who pays off each month etc as i earn significantly more. It's all easy to workout if you both approach it from a logical standpoint. If you can't do that, then forget buying a place together.

And ye - wimmins, always the sticking point. Hence when getting somewhere that is 2bdr, make sure it is nice and SIZEABLE. Get a 2bdr shoebox and then one has a mrs that moves in, 6 months later there is no room to move and people be ready to kill each other.

Deal goes to shit and you both lose out because of it falling apart.

[alr33x]

Yeh it can deffs can work just gotta pick the right person.. Spose it's no more risky than any other two ppl buying house... So much divorce these days you wouldn't believe it

[W0rp3D]

I would do it but 2 things for sure, put your name on the title and get a contract, just make sure its noted on the contract that he paid the deposit and he owns an extra percentage depending on how much the deposit is, if you ever go for any sort of loan out side the house then equity in the house is an asset but if your name is not on the title then i doubt the banks would accept it.

It could well end up in a shit fight but if he is a very good mate and you trust him then go for it, i would also take nismoids advice on plenty of room, expect there to be 4 people living there at times.

If after a few years you come to the conclusiuon that its not work out then sell the house (or one buys the other half) and split the equity.

[W0rp3D]

  On 12/12/2011 at 5:59 AM, alr33x said:

Yeh it can deffs can work just gotta pick the right person.. Spose it's no more risky than any other two ppl buying house... So much divorce these days you wouldn't believe it

they say the divorce rate is 50% and climbing, probably close to that with long term mates too but you dont have to shell out for a ring and a wedding and keep paying for annoying little shit heads that you only get to see every second weekend if your lucky lol, and no i dont have kids or an ex wife!

[alr33x]

Yeh working in real estate opened my eyes to divorce rates. Wouldn't have believed it otherwise to be honest.

Muztek anyreason u don't want name on title ?

[some_cs_student]

Keep in mind that in a partner situation the first home owners grant is used by both people when a property is purchased, and you only get it once.

I assume it would be similar when purchasing with a friend.

Good luck!

[MUZT3K]

  On 12/12/2011 at 6:37 AM, alr33x said:

Yeh working in real estate opened my eyes to divorce rates. Wouldn't have believed it otherwise to be honest.

Muztek anyreason u don't want name on title ?

No reason really, i havnvt looked into it much really yet, so i thought a house can only be under 1 persons name. so from this thread ive gathered you can put a house under 2 peoples name?

and my mate is looking at a town house at the moment and were thinking of buying off plans so save the stamp duty etc but yer im going to go have a chat with a lawyer

[R31Nismoid]

It's just like a rental, you can have as many names as you want.

As Gareth said, you will lose the first home buyers, which honestly isn't "really" a problem.

To then quality for it you would need to purchase another place, move into it etc (or fake it, and have someone staying there off-books, another risk).

Basically getting a 1st Home Buyers grant (for you both, over 2 places) isn't going to happen unless you dodge it up in the short term.

So what you would also do as part of the agreement, is split the "value" of the FHB between the two of you as you are both effectively giving up your eligebility.

He could argue he wants full value due to him supplying the deposit but that's something you'll need to workout between yourselves.

Issue down the track there after you need to then think about is furnishings and what not. Again it can get "petty" if things go sour in a few years time with regards to who owns what, who brought what to the house etc.

Same goes for any spending on property improvement and so on.

Sounds like a mine field, but approached logically and everyone keeps honest records - it should be straight forward

[alr33x]

Yeh can be in multiple names best to split the fhog, saving on stamp duty will be a big help whatever % deposit he stumps up should be equivalent to his totall greater % as that money would otherwise grow exponentially plus the interst he is saving u both over the duration of the mortgage so if he pays 10% and everything else is paid 50/50 I'd except 60/40 split in the future if it were me

[Ruffels]

it's called "tennants in common" legally binding way of two people owning a house, and working out pertance of ownership

[Adzmax]

Yep, sold my 34 for house deposit. Tough choices bro, time to man up.

[saff_cossie]

Have been through this recently. Tennants in Common as Ruffel's said is the more common way of doing this. Mine was a simple 4 pager but had a few other clauses in there including minimum sale price, permission to reside in the property etc (is rented out at the moment).

Few tricks can be done with the mortgage too so you can each have your own subset of the overall. Definately recommend getting a lawyer to do it. Max $1000, any more and it is getting too complex and they are spending too much time on it.

Don't forget all the other things a bank looks for though, savings history, rental history etc.