Why would I want to Co-Buy?

Why would I want to Co-Buy?

There are a number of reasons, and indeed benefits to be gained from co-buying. In simple terms by joining forces you increase your spending power. You can save money relating to fees and charges which in turn can be used for other things such as kitting out the house you are buying.

• Buy now rather than later

 It’s a well know fact that the average age of the first time buyer in the UK is now 34 and is increasing each year as prices rise; a trend common now common in many countries. Let’s say at the moment you are renting and are currently pay £600 per month in rent. Doing this for 4 years and 11 months, the average length of time it now takes a first time buyer in the UK to save for a deposit, you will have paid out a massive £35,400 in rent. In addition to this with the price of the average house increasing by £1500 a month this then stretches the cost by an additional £73,500. Not only are you financing someone else’s property investment with nothing in return apart from having the pleasure of living under their roof (as nice as that might be), by diverting that money to pay off your mortgage you would have made a huge dent in paying off your own property.

• Don’t be restricted, get what you are after

Multiplying your buying power allows you to increase your co-buying reach. Perhaps for a house purchase you now want a garden but don’t want to leave the neighbourhood having to move from your flat to the outskirts of town. Maybe you are looking to have a spare room or bedroom for an office or study. So why should you be restricted by the market? Co-buying allows you to look further than your own horizons. You could also benefit then from a higher long term return from your investment.

• Reduce the cost of ownership today and tomorrow

We have all heard of the phrase economies of scale, well shared ownership economics means that with the efficiencies gained co-buying sharing costs such as valuations fees, loan or mortgage fees, property maintenance and even things such as local tax bills and utilities the savings that can be generated can be huge. What does this mean? Well buy becoming a co-buyer, if for example looking for a bigger or nicer place to live, you will have more money in your pocket with which to enjoy it.

• Being a Co-Buyer can generate additional finance for use independently

As a co-buyer, not only will you benefit from the reduction in the costs associated with ownership but there are also other benefits which can raise capital for your future use. As an example when looking for a property, by pulling your resources it may be possible to buy a property with a spare room. This could then be rented out bringing in additional revenue which could then be saved, used towards further reducing your mortgage or allow you to splash out on that new plasma TV for the living room.

Or maybe you are looking for a holiday home building investment in Eastern Europe. With the joint spending power of you and your fellow co-buyers you can buy a bigger plot of land allowing for the additional building of one holiday cottage which can then be sold to reduce the costs of yours, or just increase your profits. In addition, any gain made in the value of your property over the term of your co-buyers agreement will then enable you to place a bigger deposit on your next property. Indeed by co-buying now you could quickly be making that next step as an independent buyer.

Of course there are different strokes for different folks and it may well be you have other reasons for becoming a co-buyer. Some further example benefits are as follows:

• Rather than being a buy / live-in co-buyer you may want to make the purchase as an investment and rent your share out

• Owning your home can improve your credit status

• You might be looking to co-buy abroad for a second holiday home rather than being UK based

• It may be that simply you are wishing to meet new people and / or business contacts

Whatever the reason, Co-Buyers has the answer. And if we don't, just ask us.