For a lot of people, it’s their biggest dream to purchase a house. Unluckily, it is also one of the most difficult things to achieve. That is why a lot of them choose to buy a house with a friend to split the responsibility.
Keep in mind that purchasing a house with a friend is completely practical. On most occasions, it is also very effective. This is particularly true if you and your friend know what to do.
Lucky for you, we’re here to help. Before you hire an Oahu real estate agent for help, here are a couple of things you should know:
Benefits of Buying a House with Friends
For a couple of individuals, purchasing a house has become very hard. There are a lot of them who just won’t be able to save enough deposit and show the ability to make mortgage payments. This is where purchasing a house with friends can prove to be useful.
- Purchasing a house with a friend does not mean you’ve got to live there. You can rent out the house to tenants. This offers an alternative income source.
- Purchasing a house with a friend enables you to invest and establish equity, unlike renting together. Aside from that, it also helps produce a profit.
- Your bills, mortgage, and deposit are more affordable.
- Usually, it is easier to qualify for a mortgage if you apply as a group or pair. Thus, you can easily buy a house.
Drawbacks of Buying a House with Friends
Though buying a house with friends is beneficial in a lot of aspects, there are a couple of drawbacks you have to consider as well.
- Even if you are tenants in common, it can be difficult if you realize that you aren’t compatible co-owners. This means you will have to go through the sales process.
- You may find it hard to keep on paying bills or mortgage if you or your friend’s financial status change. This can put a strain on you or your friend who needs to pick up the slack.
Here are other things to consider when buying a house with a friend:
You need to have a realistic idea of what you can and can’t afford when purchasing a house with a friend. Compare mortgage providers to try and get the ideal deal. However, you should also know what type of price range you fall under.
One of your primary priorities is to be honest with your financial status. Purchasing a house with a friend is a huge responsibility. Thus, you’ve got to ensure you are both wary of what every party can afford reasonably.
You and your friend should be able to communicate properly. This is particularly true when exploring the housing market. There are a lot of factors to consider when buying a house. Thus, you and your friend should both agree on the things you want. This includes the location of the house, size, price, design, and much more.
You need to vocalize issues and concerns comfortably with your friend.