The Advantages of Co-ownership With a Friend
Purchasing a house with a friend is a growing trend: up to 25% of potential buyers are seriously considering it. This solution involves splitting the downpayment, monthly housing expenses and the property’s net value. It is, moreover, easier to qualify for a mortgage with more than one income in the equation.
Furthermore, by combining salaries and downpayments, it becomes possible to acquire a more desirable property and one which better suits the occupants’ needs. This is likewise an excellent way for both friends to earn a tidy profit when they resell the residence in a few years, enough money to buy a new home solo or as a couple.
Can Two Families Share a Home?
Single friends that are also single parents can look forward to an additional advantage: another shoulder to carry the load. Meals, chores, homework, groceries are all daily household tasks that can be shared. Cohabitation can be even more enjoyable if the kids get along. They will always have a buddy to play with! The more anxious may equally find living in a full house comforting, with the reassuring presence of a second adult in case anything happens.
The Risks of Owning a House With a Friend
This type of transaction also comes with its share of risks, such as disagreements about the daily housekeeping (like who does the cleaning), legal issues or a change in either party’s life. The buyers must carefully think through the consequences and potential fallout that could result from such a serious commitment. It is not easy to get out of a mortgage, financially nor emotionally.