According to statistics 8 out of 10 new mortgages are being taken out jointly by family and friends, but how wise is this decision and what are the legal ramifications if something goes wrong?
An article on afr.com recently discussed this growing trend and whether or not it is a good idea.
A property strategist and mortgage broker Mario Borg says these co-ownership relationships seldom work.
He explained that financially you are responsible for the whole debt taken on with a friend or family member.
He advises partners with equal shares have a “memorandum of transfer” to avoid half of the property automatically passing to the other joint tenant on their death. He also advises creating a deed can set out who pays which bills.