More and more Kiwis are finding a creative solution to one of the biggest barriers to homeownership - and the great news is that it doesn't involve waiting years to save a bigger deposit on your own.
Co-buying is growing in popularity, and for good reason.
But like most things in property, the details matter.
So what actually is Co-buying?
To us, Co-buying simply means purchasing a property with someone who isn't your traditional partner or spouse.
What we're seeing more and more of is families and trusted networks joining forces - parents and adult children, siblings, sometimes cousins, occasionally close friends or colleagues.
What they all have in common is trust.
Generally, they're people who know each other's habits, share similar goals, and want to use their combined strengths to get somewhere neither could easily reach alone.
It's a genuinely modern way of approaching homeownership, and we think it deserves to be taken seriously.
Why it works
The reason co-buying is such a good fit for so many people comes down to a simple mismatch that we see all the time - one person has a solid deposit but limited income, while another has strong income but hasn't had the chance to save as much. Sometimes, they are both in a similar position but joining forces still achieves a greater result than the individual.
Commonly, though it's about leveraging the power of having two (or more) borrowers into a more mutually beneficial situation.
The bank still assesses the full picture: combined income, combined deposit, combined liabilities. When those pieces complement each other well, it can open door, often to a higher purchase price, more suitable property or area, or sometimes a home that ticks more boxes for both parties.
For parents helping their children into a first home, there are also a few different structures available depending on how involved they want to be - whether that's being part of the overall ownership structure, using existing equity as security, or something else entirely.
Every situation is different, and it's worth talking through the options properly.
What you need to get right before you start
Co-buying works well when it's set up well. There are a few things we always work through with clients before anything gets signed.
The first is trust - and the key thing there is that both parties have similar habits with money and finances. I've seen plenty of people who don't know each other that well but are aligned on money and habits as better co-buying partners than family.
It's important that the expectations of each party are similar - that they are on the same page about how the mortgage will be managed month to month, and those hard conversations have been had.
The second is getting something in writing. A property sharing agreement prepared by a legal expert sets out how the arrangement works - who pays what, how decisions get made, and what happens if one party wants out.
It's less about pre-empting problems and more about having a plan to fall back on.
Lastly, having an exit plan is key. How long is the arrangement expected to last? What does a clean separation look like if one person wants to buy the other out, or if life circumstances change?
Plans can always change by mutual agreement, but it's key to make sure there is one to begin with.
At My Mortgage we work with a bunch of great professionals who can help guide you in the right direction - so reach out to them for a friendly chat.
Thinking about co-buying? Let's have a chat
If co-buying has been on your radar, but you're not sure how it might work for you, we're always here to help.
Whether you're considering it with family, a sibling, or someone else you trust, we can chat through the details and provide some advice.
There's no one-size-fits-all answer, but there's usually a way to make it work if the foundations are right.
You can book a call below and we can chat about how to take the next step together.
