TO
SHOW FIRST:



AMENITIES
SPECIAL MARKETS
PROPERTY TYPES
TO
SHOW FIRST:



AMENITIES
SPECIAL MARKETS
PROPERTY TYPES

Learn

Share
Share
Save
Save

Purchasing a home with friends

Purchasing a home with friends

 
October 18, 2011

When individuals who are not family consider buying a home together, a slightly different approach is required. The main reason is that they cannot necessarily anticipate moving out at the same time, whereas a family typically stays together in one home, meaning that any decision to search for a new one involves the whole group.

In the case of friends, however, home buyers must consider their plans for the future even more carefully, even if those plans are not yet fully formed. For example, if two friends share a home while one is in school and the other working full-time, the first may wish to move out upon graduation. They would then need to determine what to do with the home and who would own it as the old arrangement became useless due to changing life circumstances.

Benefits

One advantage, according to MSNBC, is the opportunity for those involved to become homeowners sooner and split expenses, easing their financial burdens. Utilities, maintenance and other costs, as well as the work of cleaning and caring for the home is shared, rather than becoming the responsibility of a single individual alone.

If one of the homeowners does decide to move out after a few years, the other may be able to buy the remainder of the property from them for favorable terms, becoming a full owner. The one moving out, in turn, does not need to be concerned with a property he or she will no longer be living in, and receives some usable cash to buy or rent his or her next residence.

The New York Times notes such transactions should be considered and provided for when the home is bought. Other possibilities include replacing the second homeowner with a new housemate, or selling the home entirely as the owners go their separate ways. If not planned in advance, these options can become more difficult to execute.

Disadvantages

On the other hand, friends must be evaluated carefully. If one is not as fiscally responsible as the other, any debts or difficulties one has will affect the other. Married couples enjoy certain legal benefits which friends do not, thus making homeownership potentially more complicated for those who are not family, according to MSNBC.

Failure to plan for changing life circumstances in advance can cause trouble. MSN Real Estate notes unforeseen circumstances may cause friends to argue with each other, and differences of opinion which involve two people financially can jeopardize their social relationship as well as the business relationship between co-owners of a property. As a result, friends who rush in might regret the decision to pursue homeownership, although those who do look ahead can reap significant advantages.
 

About Coldwell Banker®

Since 1906, the Coldwell Banker® organization has been a premier provider of full-service residential and commercial real estate. Coldwell Banker is the oldest national real estate brand in the United States and today has a network of approximately 83,000 sales agents working in approximately 3,100 offices in 50 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand to create an iPad application and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On LocationSM YouTube channel. The Coldwell Banker system is a leader in specialty markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International® marketing program. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each office is independently owned and operated.
Coldwell Banker Real Estate LLC will never sell or provide information to a third party without your prior consent.
Click here to see our full Privacy Policy and Terms and Conditions of Use
New Search
Top Tools

Choose a Currency close window close