Joint venture options

Question from Miriam updated on 13th February 2019:

I am keen to buy an investment property. I have about $50,000 for a deposit and earn a decent salary. But I think that rather than waiting to save more of a deposit it might be a good idea to look into investing in a joint venture. Do you think that joint ventures are a good idea? What would be your advice and recommendations when it comes to joint ventures?




Our expert Kris Pedersen responded:

Joint ventures can work well but they are very dependent on the commercial nature of the parties involved. Too often I have seen people get into the arrangement with no exit rules in place if one party wants to get out at some stage. Peoples’ lives invariably change over time and so it is important to have this in place. Normally you would look to have a JV partner whose strengths are your weaknesses and vice versa. Based on the information provided it sounds like you would be best with an equity partner who can provide a larger deposit to open up more opportunities than what you could fulfil by yourself alone.



Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.

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