Is it a good idea to buy a house with other people?
Are you tempted to buy a property with one or more other people so you can access the property market more cheaply? Admittedly, it’s an interesting concept. But think carefully before you get involved in this type of real estate transaction. Buying a house with your sister or a friend is a complex project that could easily become disastrous. Here are three tips to help things go smoothly.
1. Choose your partners carefully
Agreeing to share the responsibilities of a house with other people is like committing to a relationship. Even though everyone gets along perfectly now, no one can predict what will happen 5, 10 or 15 years down the road. So, you’re better off choosing partners that you know well and with whom you have already established a trusting relationship. After all, you won’t be able to just walk away from the project whenever you feel like it.
2. Rely on experts
Start by using the services of a real estate broker who is familiar with how co-ownership works. Talk about the advantages and disadvantages. And be patient; it may take several weeks before you find a property that meets everyone’s needs. When you find a property that interests you, hire a certified home inspector for a full pre-purchase inspection report that can protect you in case of later disputes. Lastly, choose a trustworthy notary or lawyer who will be able to guide you through the buying process.
3. Plan for the worst-case scenario
Should you buy a divided or undivided co-ownership property? Do you need to establish a co-ownership agreement? make informed decisions. And the adage that short reckonings Your notary or lawyer can help whatever happens, remember make long friends. you determine the best format. Even if you trust your partners completely, have a plan for the worstcase scenario. If one partner decides to leave, will you be responsible for his or her mortgage payments? Can you buy him out? What happens if one of you dies?
In short, buying a property with other people can be a great opportunity to become a property owner. Just keep both feet planted firmly on the ground so you can