6 Things to Consider Before Buying a House with Family or Friends
Does this sound like a great idea? Getting homeownership with a portion of the cost? There are many reasons to buy a home with someone you aren’t married to. However, keep the following issues in mind though before signing on the dotted line.
- Be Transparent About Finances: Down payment, credit scores, potential liens and unpaid loans, ability to pay for the mortgage. Do the math on what you and your co-owner can afford.
- Mortgage Responsibility: Everyone involved is on the hook for the entire mortgage, even with a split ownership. If your potential co-owner loses their job you will be responsible for the entire payment.
- Co-Ownership Legal Options: Work with a lawyer to decide how to co-own a home. Tenancy in common and joint tenancy with rights of survivorship ownerships have different advantages based on your situation.
- Splitting expenses, perk or potential headache?: You can get a better home by splitting the mortgage but what about maintenance and utilities. Set clear expectations at the beginning.
- Non-mortgage expenses and responsibilities: Cleaning service, lawn service, general maintenance and other homeownership related tasks will come up. Setting up these expectations before is easier than later.
- Selling down the road: Is one of you going to get married and want to move out? How does this work? Sour note issues can come up too. So be sure you have an out to sell if needed.
Purchasing a home with a family member or friend is a big commitment, both personally and financially. Be sure to think through all the angles!
At RE/MAX Platinum Realty our team is here to guide you through any unique buying or selling situation. #remaxplatinumrealtyofflorida #sarasotarealestate
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