Financial planning is really about… considering co-ownership with friends or siblings

Some young (and not so young) clients buy homes as co-owners with a friend or a sibling.

It can make a lot of sense to team up with someone else and buy a more valuable home in a great location close to work and all amenities with plenty of living space and privacy, as against the two owners buying two smaller homes a greater distance from work and without lower capital gains prospects than the bigger home.

Each case is different, and co-ownership is not for everyone. But we have seen it work beautifully.

Typically, the property is owned as tenants in common. In a tenancy in common, the ownership interests are separate and can be sold to third parties (subject to any co-owner’s agreement) or bequeathed to third parties under a will.

A written co-ownership agreement is a must. Even with siblings or best friends. The agreement gives everyone peace of mind and makes sure that no one loses a best friend if circumstances change.

And remember, over time everyone’s circumstances will change.

Advising as to whether to own a property as joint tenants or tenants in common, and what to include in a co-owner’s agreement, is actually legal advice. MLA Lawyers can provide a low-cost way for you to ensure that your clients get their co-ownership arrangements right.

The Dover Group