SHOULD YOU PURCHASE BY YOURSELF OR WITH YOUR PARTNER?
We often receive the question:
"Should I purchase an investment property by myself or with my partner?"
The answer will always depend on your individual circumstances, however, listed below are some useful pieces of information for you to consider.
Firstly, we recommend that when making this financial decision between purchasing individually or with your partner that you seek advice from an experienced and appropriately qualified professional/s, such as an accountant, financial planner, and/or your lawyer.
To read more about each of these professionals visit our 6 Experts You Need When Investing In Property article.
Key points for consideration:
Getting the loan
First things first, it is imperative to have clearly defined goals in the lead up to the purchase as well as a clear exit strategy, particularly if the relationship breaks down. No one wants all their hard-earned money landing up in the hands of opposing legal teams.
Another point to add is the change in times with the younger generation. More often than not, the younger generations view money in terms of mine, yours, and ours.
If you review a family 50 years ago, the family would typically buy an investment property in the name of the person who earns the most income so that the initial losses, can be negatively geared against the higher tax rate.
Today, most families have two, or more, incomes with property ownership and its losses being shared as would be the capital gain should the property be sold.
Getting The Loan
There can be different complications between a single investor and joint investors including the type of loan.
Getting a loan in today’s economic climate is not always easy, so having a good mortgage broker, which experience relating to your needs and goals is highly advised.
Once again, all roads point towards getting sound financial advice. Your conversation should start with a good accountant, financial planner, mortgage broker, and solicitor.
Plan this journey well and do not to mix your investment needs with what a nurturing relationship needs ... they are vastly different currencies.
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Warren Jacobs - Senior Property Investment Consultant at Meridian Australia
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.