Before I seek professional advice i would like to get your thoughts on partnering with a friend to increase our buying power and buy a better property.
Say on a $500K loan ($250K each) both of us could service the debt on our own, but prefer not to have such large out of pocket interest repayments.
So far I've learnt the following needs to be considered:
1. Joint and Severally Liable - we'd both be entirely liable for the debt if one defaults
2. #1 will affect future borrowings as the entire debt will be considered as yours by the banks.
3. Risk if one wants/has to sell for whatever reason earlier than initially planned
I imagine all income/expenses can be split 50/50 between the two of us?
Say on a $500K loan ($250K each) both of us could service the debt on our own, but prefer not to have such large out of pocket interest repayments.
So far I've learnt the following needs to be considered:
1. Joint and Severally Liable - we'd both be entirely liable for the debt if one defaults
2. #1 will affect future borrowings as the entire debt will be considered as yours by the banks.
3. Risk if one wants/has to sell for whatever reason earlier than initially planned
I imagine all income/expenses can be split 50/50 between the two of us?