If it's been your lifelong dream to purchase a home, but you just can't save enough money for the down payment, you should look into the possibility of buying one together with a family member or friend in the same predicament. By pooling your resources together, you'll be in a much better position to buy a home. One benefit of co-buying with your roommates is there will be less adjustment because you're already living together.
One viable option to consider is a residence with separate units, such as a duplex. Everyone would have the privacy of their own separate entrance, kitchen, and more. Even though there may be advantages with this setup, the issues of maintenance costs for the land and property still need to be discussed.
Another less costly alternative is to purchase a single dwelling and share the space together. One major problem with this arrangement is you would have to sacrifice your own private space. If you and the co-owner still decide to enter into this kind of arrangement, try buying a home with a layout that allows you separate private areas.
Before you hastily jump into a joint arrangement, you'll have to discuss major financial issues and other issues particular to a joint ownership. One of the biggest issues will be concerning splitting the down payment and monthly expenses. Will this be an even split or a percentage split depending on the amount of down payment put in, the size of bedroom occupied, or some other factors. Be aware your tax benefits will be dependent on how you split ownership.
Another issue to be discussed is what happens to a co-owner's share of the property when he or she dies? Will their share automatically pass on to the beneficiaries of their will or trust? What happens in situations when one owner decides to move out-do they have the option to rent their share of the house, sell it, or require the other co-owners to sell or buy him or her out?
Knowing which form of title to list on the property deed shouldn't be taken lightly. Some typical forms of ownership include tenants in common or joint tenants with the right of survivorship. Consult with an experienced attorney who can advise you on the most suitable form of ownership for your needs.
Some additional concerns that should be addressed are what length of time does everyone plan on staying in the property (and what are the options when one owner gets married or their parents need extended care); how will the common areas be maintained (cleaning, home supplies, music volume, and overnight guests); decorating the house, and what happens when one owner gets into financial problems.
Co-buying a house is a major decision that requires the right co-buyer to be successful. Make sure you spend quality time discussing all these important issues with your partner and solidify it with a legally binding contract drafted by an attorney.
One viable option to consider is a residence with separate units, such as a duplex. Everyone would have the privacy of their own separate entrance, kitchen, and more. Even though there may be advantages with this setup, the issues of maintenance costs for the land and property still need to be discussed.
Another less costly alternative is to purchase a single dwelling and share the space together. One major problem with this arrangement is you would have to sacrifice your own private space. If you and the co-owner still decide to enter into this kind of arrangement, try buying a home with a layout that allows you separate private areas.
Before you hastily jump into a joint arrangement, you'll have to discuss major financial issues and other issues particular to a joint ownership. One of the biggest issues will be concerning splitting the down payment and monthly expenses. Will this be an even split or a percentage split depending on the amount of down payment put in, the size of bedroom occupied, or some other factors. Be aware your tax benefits will be dependent on how you split ownership.
Another issue to be discussed is what happens to a co-owner's share of the property when he or she dies? Will their share automatically pass on to the beneficiaries of their will or trust? What happens in situations when one owner decides to move out-do they have the option to rent their share of the house, sell it, or require the other co-owners to sell or buy him or her out?
Knowing which form of title to list on the property deed shouldn't be taken lightly. Some typical forms of ownership include tenants in common or joint tenants with the right of survivorship. Consult with an experienced attorney who can advise you on the most suitable form of ownership for your needs.
Some additional concerns that should be addressed are what length of time does everyone plan on staying in the property (and what are the options when one owner gets married or their parents need extended care); how will the common areas be maintained (cleaning, home supplies, music volume, and overnight guests); decorating the house, and what happens when one owner gets into financial problems.
Co-buying a house is a major decision that requires the right co-buyer to be successful. Make sure you spend quality time discussing all these important issues with your partner and solidify it with a legally binding contract drafted by an attorney.
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