{"id":10365,"date":"2024-05-22T11:53:10","date_gmt":"2024-05-22T11:53:10","guid":{"rendered":"https:\/\/property254.co.ke\/blogs\/?p=10365"},"modified":"2024-06-13T07:24:24","modified_gmt":"2024-06-13T07:24:24","slug":"what-is-joint-tenancy-is-it-worth-the-investment","status":"publish","type":"post","link":"https:\/\/property254.co.ke\/blogs\/what-is-joint-tenancy-is-it-worth-the-investment\/","title":{"rendered":"What is Joint Tenancy? Is It Worth the Investment?"},"content":{"rendered":"\n<p>The cost of living is at its peak, not only in Kenya but also in other countries worldwide. As a result, getting money for survival has been challenging, leave alone investing in real estate.&nbsp;<\/p>\n\n\n\n<p>However, that should not discourage you because life has to move on anyway, with new survival tactics.<\/p>\n\n\n\n<p>You can get a friend or a relative and engage in joint tenancy, where you&#8217;ll contribute towards property ownership.<\/p>\n\n\n\n<p>By the end of this post, you should:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Understand joint tenancy meaning&nbsp;<\/li>\n\n\n\n<li>How joint tenancy works<\/li>\n\n\n\n<li>Know the benefits of joint tenancy&nbsp;<\/li>\n\n\n\n<li>Why you may have to avoid joint tenancy<\/li>\n<\/ul>\n\n\n\n<p>So,<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-joint-tenancy\">What is Joint Tenancy?<\/h2>\n\n\n\n<p>Don&#8217;t confuse joint tenancy with being a tenant. Being a tenant means you don&#8217;t own the property and can only rent it. A tenant can move from one property to another without restrictions.<\/p>\n\n\n\n<p>On the other hand, joint tenancy is a property ownership criterion involving two or more people contributing equally to buying property.<\/p>\n\n\n\n<p>When you are ready to form a joint tenancy, you can hire a <a href=\"https:\/\/property254.co.ke\/blogs\/benefits-of-creating-brand-identity-for-real-estate\/\" title=\"Benefits of Creating Brand Identity for Real Estate\" target=\"_blank\" rel=\"noopener\">real estate<\/a> attorney who will take you through all legal aspects.<\/p>\n\n\n\n<p>You can co-own a home with a spouse, friend, or relative with whom you have equal responsibilities in the house.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-property-254 wp-block-embed-property-254\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"HAJ55kYKGL\"><a href=\"https:\/\/property254.co.ke\/blogs\/steps-to-close-a-real-estate-deals\/\">10 Key Steps to Close a Real Estate Deal<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;10 Key Steps to Close a Real Estate Deal&#8221; &#8212; Property254 by Tulia Real Estate\" src=\"https:\/\/property254.co.ke\/blogs\/steps-to-close-a-real-estate-deals\/embed\/#?secret=5gIGUAUoJu#?secret=HAJ55kYKGL\" data-secret=\"HAJ55kYKGL\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>In addition, you can also co-own a commercial property where you will equally share the profits and any other maintenance costs involved.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-joint-tenancy-works-nbsp\">How Joint Tenancy Works&nbsp;<\/h2>\n\n\n\n<p>Each member will contribute 50% of the final property cost if you are two members. In addition, all your names will appear on the property ownership documents.&nbsp;<\/p>\n\n\n\n<p>What if you both don&#8217;t have funds? Can you take a mortgage together? Well, to get a mortgage loan to invest in <a href=\"https:\/\/property254.co.ke\/blogs\/reasons-why-bargaining-is-a-sign-of-red-flag-in-real-estate\/\" title=\"Reasons Why Bargaining Is a Sign of Red Flag in Real Estate\" target=\"_blank\" rel=\"noopener\">real estate<\/a>, you both need a higher credit score, say above 650.<\/p>\n\n\n\n<p>However, if the income of the joint tenants is high when combined, there is a good chance of the lender approving their loan.<\/p>\n\n\n\n<p>In addition, if all members have excellent credit scores, they will get a better loan deal with lower interest rates. So it will be a good idea for each member to improve their credit score before applying.<\/p>\n\n\n\n<p>If both of you can qualify for a mortgage loan, you can apply for a mortgage together when you have a high score and a higher income level.<\/p>\n\n\n\n<p>Every member will contribute an equal amount of all costs involved during the <a href=\"https:\/\/www.chase.com\/personal\/mortgage\/education\/financing-a-home\/how-to-apply-joint-mortgage#:~:text=A%20joint%20mortgage%20looks%20at,Building%20credit.\">joint mortgage loan<\/a> application. In addition, the lender divides the instalments among the members so that each one pays equally.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-property-254 wp-block-embed-property-254\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"OQrjcOPQkj\"><a href=\"https:\/\/property254.co.ke\/blogs\/how-to-become-a-property-manager\/\">Easy Steps to start Your Career as a Property Manager in Kenya<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Easy Steps to start Your Career as a Property Manager in Kenya&#8221; &#8212; Property254 by Tulia Real Estate\" src=\"https:\/\/property254.co.ke\/blogs\/how-to-become-a-property-manager\/embed\/#?secret=N8ltCJ35EZ#?secret=OQrjcOPQkj\" data-secret=\"OQrjcOPQkj\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-if-one-member-dies-or-fails-to-repay-his-share-of-the-mortgage-due-to-job-loss-or-something-similar\">What if one member dies or fails to repay his share of the mortgage due to job loss or something similar?<\/h3>\n\n\n\n<p>Well, if a co-tenant dies, their share of ownership goes to the other co-tenant. If more than one co-tenant remains, they will have to restructure their ownership to have equal shares. If unwilling to share equally, they may have to reform it to <a href=\"https:\/\/www.investopedia.com\/terms\/t\/tenancy_in_common.asp\">tenancy in common<\/a>. Tenancy in common allows members to have different claims of property ownership.<\/p>\n\n\n\n<p>The same criterion applies if one tenant wants to sell their property share.<\/p>\n\n\n\n<p>If one co-tenant dies, the remaining co-tenants take full responsibility for the mortgage and the property. The deceased beneficiaries have nothing to do with the joint tenancy property. They can only benefit from the dead person\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s other properties.<\/p>\n\n\n\n<p>This aspect of property transfers is known as Joint tenancy with rights of survivorship.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-benefits-of-joint-tenancy-nbsp\">The Benefits of Joint Tenancy&nbsp;<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>You only need to have a percentage of the total cost of the property.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>We all <a href=\"https:\/\/property254.co.ke\/blogs\/real-estate-videography-and-all-you-should-know-about-it\/\" title=\"Real Estate Videography and All You Should Know About It\" target=\"_blank\" rel=\"noopener\">know how buying real estate<\/a> can be expensive, an amount you&#8217;ll need decades to clear your mortgage.<\/p>\n\n\n\n<p>However, when you agree on a joint tenancy, you may not even take a loan if you have a huge amount of savings.<\/p>\n\n\n\n<p>You will share the downpayment that the <a href=\"https:\/\/property254.co.ke\/blogs\/key-pillars-of-a-successful-real-estate-startup\/\" title=\"Key Pillars of a Successful Real Estate Startup\" target=\"_blank\" rel=\"noopener\">real estate<\/a> buyer requests.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li>If you take a mortgage, you don&#8217;t pay it solely.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>When you take a mortgage to invest in joint tenancy, all co-tenants will have an equal share of installments to repay the mortgage.<\/p>\n\n\n\n<p>Furthermore, it will take a shorter period to repay the mortgage since you are sharing.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li>When one co-tenant dies, his share belongs to the remaining co-tenants.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>This scenario is only advantageous to the remaining co-tenant since the deceased beneficiaries have nothing to rejoice at. However, if the remaining co-tenants are compassionate, they can reward the deceased family with a one-time compensation, but it&#8217;s not compulsory.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"4\">\n<li>The mortgage loan is paid, even when one member dies.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>The deceased family members won&#8217;t be left with a mortgage loan to repay if their loved one dies. Instead, the remaining co-tenants will take care of it without involving the family.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-disadvantages-of-joint-tenancy-nbsp\">Disadvantages of Joint Tenancy&nbsp;<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>When you die your family is left with nothing.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>With the rights of survivorship, other co-tenants have the right to own all your shares since there is no need for probation.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li>Added responsibility.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>If one co-tenant dies, the remaining members have the responsibility to repay the mortgage loan.&nbsp;<\/p>\n\n\n\n<p>The same applies when one member loses their job. In addition, the remaining co-tenants will also have to foot all property maintenance costs.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li>Relationship may end.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>You all know what happens when a good relationship turns sour. It will be so tough to co-own property with someone you don&#8217;t talk with. The only possible solution will be selling the property, which won&#8217;t happen so fast.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion-nbsp\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>Joint tenancy is a good investment plan, especially if you are working with a close friend or relative. The good thing is that you won&#8217;t need lots of money to be a <a href=\"https:\/\/property254.co.ke\/blogs\/5-main-benefits-of-using-drones-for-real-estate-photography\/\" title=\"Main Benefits Of Using Drones For Real Estate Photography\" target=\"_blank\" rel=\"noopener\">real estate<\/a> investor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-nbsp\">Frequently Asked Questions&nbsp;<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>When do I need joint tenancy?<\/strong><\/li>\n<\/ol>\n\n\n\n<p>You will need this investment when you have less money, but you have someone whom you can share and co-own the property with.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li><strong>What happens when one member wants to leave a joint tenancy?<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The member has to give written notice to the other members. Then they should agree on terms and conditions involved.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li><strong>Can a couple have a joint tenancy?<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Yes. If they agree, they can engage in joint tenancy ownership. In case of divorce, they will equally divide the property, with help of an attorney of course.https:\/\/www.youtube.com\/embed\/BxvT-qT-7R0?start=68<\/p>\n\n\n\n<div class=\"wp-block-group alignfull has-text-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"color:#000000;background-color:#ebf1f2\">\n<h2 class=\"wp-block-heading has-text-align-center\" id=\"schedule-a-visit\" style=\"font-size:clamp(32.969px, 2.061rem + ((1vw - 3.2px) * 2.552), 59px);px;line-height:1.15\"><strong>Invest in your real estate knowledge!\u00a0<\/strong><\/h2>\n\n\n\n<p class=\"has-text-align-center has-regular-font-size\" style=\"line-height:1.8\"><strong>\u00a0join our training notification\u00a0list and gain access to valuable educational resources to help you achieve your real estate goals<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-03627597 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 has-custom-font-size has-larger-font-size\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/property254.us10.list-manage.com\/subscribe?u=a009bd09455a4b3b568c7da50&amp;id=519a9b6bb9\" style=\"border-radius:15px;color:#ffffff;background-color:#1277e1;padding-right:var(--wp--preset--spacing--80);padding-left:var(--wp--preset--spacing--80)\">CLICK TO JOIN<\/a><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The cost of living is at its peak, not only in Kenya but also in other countries worldwide. As a result, getting money for survival has been challenging, leave alone investing in real estate.&nbsp; However, that should not discourage you because life has to move on anyway, with new survival tactics. You can get a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11096,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-10365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-management"],"_links":{"self":[{"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/posts\/10365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/comments?post=10365"}],"version-history":[{"count":9,"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/posts\/10365\/revisions"}],"predecessor-version":[{"id":12915,"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/posts\/10365\/revisions\/12915"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/media\/11096"}],"wp:attachment":[{"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/media?parent=10365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/categories?post=10365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/property254.co.ke\/blogs\/wp-json\/wp\/v2\/tags?post=10365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}