With house prices soaring in Kenya, getting on the property ladder is an increasingly difficult task for most ordinary first time Kenyan buyers. Consequently, more Kenyans are choosing to buy a house with a friend or member of their family. Most single people can not afford to secure a mortgage, let alone the deposit. Purchasing a house with a friend or family member does come with risks and both parties should consider the benefits and drawbacks carefully before entering into joint ownership. Both parties should seek legal advice but co-buying can be very profitable if risks kept to a minimum.

Benefits

Buying a property with a friend or member of the family allows them to move up the property ladder much sooner than would be otherwise be able to do. Other benefits of co-ownership include

Shared deposit

Shared Administration costs (start up fees)

Bigger mortgage

Shared mortgage repayments

Maintenance costs shared

Downside

Downsides to consider when buying with a friend or family member include

Added legal costs - increased fees

Disagreements

Financial complications

Procedures to limit risks

There are various procedures house buyers must go through when investing in a property with a friend or member of a family. It is important to seek the advice of legal and financial professionals in order to ensure the process incurs as few risks as possible.

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