HOW TO DEAL WITH AN INVESTMENT PROPERTY DURING A RELATIONSHIP BREAKDOWN
Have you recently separated from your partner, and don't know what to do with your investment property? Don't worry - here at First National Real Estate Waverley City, we have a solution to suit your situation.
We encourage everyone to get a sound co-purchase agreement when buying any property with a partner.
Of course, we encourage everyone to get a sound co-purchase agreement when buying any property with a partner, because it can serve to protect both parties. It lays out who pays the bills, who is liable in the event of a relationship breakdown, and how one of the parties can sell their share of the property (if you even want that to be a possibility).If you spend hundreds of thousands of dollars on a home, even millions, you'll want to make sure that you're protected no matter what. You don't want to find out that you don't have any claim to the property after the relationship has broken down and then lose all of the money you put into the investment!
What can you do to protect yourself when buying property?
When you decide to purchase property with someone else, be it a significant other or a group of friends, you have the choice between a joint tenancy or a tenancy in common. In a joint tenancy, each investor in the property has equal shares and equal responsibilities, regardless of how much they put toward the home deposit or how much they pay off the mortgage.
In the event of a separation that requires you to sell your investment, both parties receive an equal share of the profits (or are liable for an equal share of the losses). If you're married, this might be the best choice based on your shared finances.
If you buy through a joint tenancy, you'll have a claim to half of the investment.
Is there another option?
If you've bought a property through a tenancy in common, you may have uneven shares in the home. If you paid 70 per cent of the deposit, you'll be paying for 70 per cent of the mortgage and the bills, and you'll receive 70 per cent of the profits. Your partner, on the other hand, will only receive 30 per cent of the profits.
If you need to sell your investment property and don't know how to go about it, we can help you to list and get a great result. The property markets in Australia and New Zealand are on the up, and our team at First National Real Estate Waverley City will do our best to ensure you make a sound return during one of life's most trying challenges.