Buying with a partner, friend, or family member can be a great way into the market, but it’s also one of those situations where things need to be really clear upfront.
New Zealand Banking Ombudsman Nicola Sladden has spoken about how problems usually don’t come from the purchase itself, but from what happens when circumstances change.
And that’s what I see too.
Before buying together, it’s so important to talk openly about money, who’s contributing what, what happens if someone wants to sell, and how you’d handle things if life doesn’t go to plan.
From a lending point of view, most joint loans are jointly and severally liable. That means each person is responsible for the full loan, not just their share. If one person can’t pay, the other may need to step in.
Banks also look at everyone’s income, expenses, and credit history, so you’re tying your financial future pretty closely to someone else’s choices.
Having a written agreement in place can make a huge difference. It helps set expectations, protect relationships, and avoid stress later on.
If you’re thinking about buying with someone else, I’d really encourage you to get advice before you commit. A bit of planning upfront can save a lot of worry down the track.