Co-buying, a way to invest in your kid’s future (and finally get them to move out)

Recent research from the Commonwealth Bank of Australia revealed that only four out of ten first-home buyers were entering the property market independently. They were seeking help, either from the federal government or from their own parents.

Helping first-home buyers through co-buying

Co-buying allows first-home buyers to have their parents invest in their property, thereby helping them take ownership. People often assume that our property investors make up a large portion of our community, but they represent only 10% of the population.

It's a way for parents to invest in property while also providing a roof over their heads for first-time buyers.

The importance of legal documentation when co-buying

Even if you are co-buying or co-investing with your parents, you'd still want to have that legal documentation in place. The worst thing would be for a family breakdown to occur due to a complicated arrangement.

A common way people do this is by using a guarantor on the loan. The problem with that, as we’ve all learned from experience, is that when you're in your 20s, your relationships aren't always the most consistent.

If you have someone who lives with you for more than six months, technically, 50% of that property is at risk. However, with defined legal co-ownership in that property, only the child's portion is potentially at risk.

Are you ready to invest in your child’s future, or are you hoping to have your parents help with your property purchase? Reach out to our team today for a comprehensive breakdown of co-buying and to learn how a co-buying agreement can work for you.

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