For how long have you been saving so as to accumulate enough funds that will enable you to buy a good piece of property? For how long have you been living on strict budgets and wanting to spend on something more productive and gratifying but are unable to do so?
Well, you and dozens of other people are also facing these problems. In the present economic situation, it can undoubtedly be stated that property prices are increasing and they are perhaps increasing at an increasing rate. You save millions of dollars but when you go out into the wild to buy a property, its price has outrun the savings that you worked so hard to make.
The question then comes, what should be done in a time like this? Tthe solution lies with teaming up with a partner to buy out a property either for solely residential purposes or for business dealings.
Getting a partner: The only hope
Given the present increase in property prices, the only solution is to team up with a partner and pool in the money that both of the partners have to buy a property that both of them want. At the outset, this idea might seem absurd and out of context. If you know how businesses work, you might also know that many business relationships do not end well and result in an even greater financial crisis.
This is of course in contrast to the situation where your partner is your spouse or some other blood relative. The factor of risk is however, still present although less than the situation where your partner is someone you do not know very well.
Despite this, teaming up can be a very clever strategy given that the laws play their role effectively. With this we can move on to discuss the types of partnerships that you can get in so as to minimize the risks or the so-called ‘break-up’.
Joint tenancy is an ownership structure wherein the share of the deceased passes on to the person with whom the tenancy was shared. So for example, in joint tenancy, the amount shared must be equal and keeping that in mind, you and your wife both contribute 50% towards the price of a new house. Now, if one of you die, the 50% share will automatically be inherited by the one still living.
Tenants in Common
Common tenancy is a more suitable option for partners who are buying property for business purposes and are not intimately related. The main differences in common tenancy is that the amounts shared may not be equal. You can contribute 60% of the price while your partner can contribute the rest.
Moreover, in common tenancy, there is a choice as to whom will inherit the share once you or your partner dies. So you can state it in your will as to who will be inheriting your share once you die