Tips to buy and share a personal residence

avoid the commute and start building equity much sooner. this a good idea?

Monty’s The idea of buying a home together is not new. What is new is potential homebuyers are considering a larger pool of potential partners to join them in the purchase of a home.

Run it

Is

like a business

function? Do ownership interests have to be equal? Will we utilize a limited liability company or become tenants in common? How can one exit the agreement?

How is value established at an exit? Can a party subdivide his or her interest? What happens if a partner becomes disabled or dies? If a partner leaves early, do they have to sell their share?

Can a partner move out and rent their bedroom?

Talk about your personal money issues, how to share food costs, how to pay bills, or if one partner loses a job and cannot fund their obligation?

How will the household responsibilities be managed? Can the written house rules be included in the agreement?

If you have made it this far, now it makes sense to chip in funds to engage legal counsel and seek feedback. Consider an attorney not acquainted with any of the participants.

Because this twist of joint ownership is in its infancy, funding may require some sleuthing. There are a variety of methods already in existence and new startup companies that offer a range of new solutions. Do an Internet search for “new breed of equity sharing programs” to get started.