September 29, 2022
3 minute read
The barriers to home ownership remain challenging for young people. 67% of 25-34-year-olds say getting a deposit together is their biggest hurdle and we know that half of first time purchases are only made possible with the help of the Bank of Mum and Dad.
As it becomes tougher to buy, young people are becoming more creative about how they get on the ladder. Back in 2018, HSBC found that around 1 in 7 young adults would be open to buying with someone who isn’t their partner. It’s no surprise then that news stories about friends clubbing together to buy their first property are becoming more and more common. Buying property with friends means you can pool resources, which can increase your borrowing power which in turn allows you to access cheaper mortgage rates.
Challenges often come from nervousness about the sums involved and questions of trust. People might be worried about ruining friendships by buying with friends or the changing relationship dynamics once serious money is involved. Even within families, there is often a fear of awkward conversations.
It’s important to treat buying with friends as a serious financial arrangement and get the right legal protection in place. That way, you minimise the risks of misunderstanding and you’re in a much stronger position to feel secure if circumstances change.
Here are four steps you can undertake to ensure the process goes smoothly –
At MaryR, we make buying a home together simple. We support buyers to find out what they can afford, buy that dream home and own knowing their interests are protected. If you want to avoid awkward conversations and get the clarity and confidence you need to purchase with friends, sign up today.
With MaryR it’s simple. Kick off the purchase process. Instruct a lawyer (we can help with that) and set yourself up on MaryR. We’ll start tracking each individual share.