We have awoken to find ourselves in an era which has become a progressive struggle in terms of budget cuts and high interest rates, leaving us unable to purchase the homes we desire. So when things become tough we become smart. Now you can finally have a piece of the pie and eat it.

Perhaps you have heard of it a thousand times and never once stopped to consider that it may work for you. The good news is that it has become quite the trend and produces an excellent result. The most favoured option nowadays is to make use of a surety where another person (perhaps a member of your family or a close friend) acts as warranty for a loan in order to take on the responsibility for the buyer, should he fall behind on his monthly instalments.

We can agree that in theory this method provides you with a 100% fool proof guarantee. However, in practice, banks have discovered that it’s inefficient and takes too much time.

This problem led to the creative solution of the co-ownership. In signing a co-ownership both owners share the responsibility of the loan. Regardless to say few properties have sunk and had to be repossessed when using this method.

Before considering a purchase of property using a co-ownership loan, careful attention must be given to the subsidiary issues that could arise later in the ownership. This includes the potential death of a co-owner.

It therefore becomes detrimental for co-owners to set up a will in which it stipulates exactly how this property should be dealt with and managed in the event of a co-owner's death.

It is also strongly advised for both owners to take out life insurance for each other so that they are covered in their share of the loan or bond.

A few issues such as these must naturally be seen to. Co-ownership however, remains an excellent doorway into the property market and helps to greatly increase your stake in it. Now is the time to buy while the property market is still ripe for the picking.

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