You can share anything with a friend: a meal, an embrace, your
deepest secrets. But would you consider sharing in homeownership with a
friend? With housing affordability being a concern for hopeful buyers,
many are turning to buying a home with a friend as a way to secure
homeownership. Is it right for you? Here are a few things to consider
before you pitch the idea to your BFF.
How’s your relationship?
How
is the relationship with the friend you have in mind? Is this someone
you’ve just met or someone you’ve known for years and feel confident you
know them well? It would be wise to discuss finances, debt, short-term
and long-term goals before committing to buying a home together.
What kind of living space do you want?
While
you may have thought your days of having a roommate-style living
situation were long gone, you may want to consider if a divided living
space or a shared living space is something you could tolerate in a
shared home with a friend. If more separation is preferred, you might
want to consider a space that’s easy to divide and could potentially
have its own entry/exit points, like a duplex.
How will you divide responsibilities in and around the home?
Outside
of the purchase of the home, you’ll need to discuss how you both will
maintain the home and handle the additional expenses that come with
homeownership. Will you divide utilities, seasonal maintenance, and
repairs evenly, or will you pool money together to cover these
responsibilities?
What type of ownership will both of you have?
When
buying a home with someone, you have to remember you’re ultimately
sharing in ownership, and there are many ways to share in this
ownership. You may consider a common ownership type like joint tenancy,
where each party owns the home equally, or tenancy in common, where you
can own a percentage of the property. Whatever you decide, we encourage
you to speak with a real estate attorney for guidance.
Buying
a home with a friend is a great way to get more of what you need in a
home while spreading out the cost to purchase it. Need more direction on
entering this type of agreement? Connect with nearly 9,000 agents on REIN.com.
Ready to buy but not sure what you can afford? Check out the mortgage
calculator to help estimate possible monthly payments. Download the REIN.com app
and put the power of fresh and accurate listing data in the palm of
your hand. The app is available free in the Apple App Store and Google
Play Store. For local listings you can trust, start with REIN.com.
Local Home Listings You Can Trust.
