Will I get all my money back?
- If you have entered into an agreement with your family then you will have more certainty as to what you get back. You will have at least discussed the problem.
- The most common problem is that often the property has not increased in value by the amount that you have paid for your flat or extension. If you pay $100,000 for the extension, this does not mean the whole property has gone up in value by $100,000. In a given suburb there is a limit to how much any property will be worth, no matter how big or luxurious. If the property is to be sold to pay you back, who is going to take the loss? You will want to get your $100,000 (perhaps with interest) back but that might mean your family will not get as much for the rest of the house as they would have before you came along. If they get what their house was originally worth, you won't get back all your money. What is fair?
- On the other hand, if the property has gone up in value, who gets this increase. You might think you should because you consider it was your extension that increased the value. They might think they should because it is their property? What is fair?