Property Investment: Should You Join Forces to Purchase Property
Buying a home property can prove financially difficult for many first time property buyers. The rising costs of real estate in Australia also mean that waiting to buy in the future may be even more expensive. If you have a desire to own property but are not able to afford it, it would be a wise idea to pool resources with another party. Joining forces with another prospective property owner who's facing similar financial difficulties can help you both to benefit from property investment.
As much as the idea of joining forces sounds viable and reasonable, it is not meant for everyone. Read on to find out more about this concept and the type of property owners it applies to so that you can make an informed decision.
The concept of joining forces
Joining forces simply refer to the process where two people pool their resources to purchase a piece of property with an intention of developing two homes on the same piece of land. This concept of having two blocks of houses under the same property is known as dual occupancy, and it is widely considered in Australia as a cost-saving and viable investment. In this living arrangement, the houses built on the same property have the same design and share certain facilities such as the gate and parking lot.
Benefits of joining forces
Dual occupancy offers numerous benefits to the property owners. First, the cost of purchasing the piece of land and developing the property is shared equally among the two buyers. This allows homeowners who would previously not have been able to afford a home to do so. Also, since the units are built as one, the cost of designing, constructing, and furnishing the houses is relatively low as compared to single standing homes and properties.
Also, the cost of owning and maintaining the property is lower as it is shared between the two owners. Although the utility bills in the homes are covered separately, the overall cost of running a home in a dual occupancy setting is relatively low and quite affordable.
Candidates for dual occupancy
As aforementioned, joining forces and building a dual occupancy unit is not meant for everyone. The most viable candidates for this form of arrangement are close friends or family members. The idea of splitting costs, sharing facilities, and living next door to a stranger isn't quite welcoming. If you have to consider this option, make sure that you find a homeowner who you are close to and wouldn't mind living next door to.
If you feel that joining forces to build a dual occupancy unit is viable for you and you have the ideal partner for the project, make sure that you work with a professional dual occupancy builder.