Just making this thread to see if anyone on here considered this or has gone threw with it. I’m talking about 50/50 ownership.
Found this article that is very informational. I plan on looking more into it tomorrow.
http://www.nytimes.com/1984/05/06/realestate/buying-a-home-with-a-friend.html?pagewanted=all
Not really looking for advise here but it is always welcome.
Bad idea…that is all.
Probably.
You make this thread and then say you’re not asking for advice? What do you want from us then?
And yes, I know it can be a bad idea…
Not good. For many, obvious reasons. Unless you plan on marrying your ‘friend’.
If your purpose of considering purchasing a home with a friend is because then you have twice as much money for down payment or for credit rating purposes, Don’t do it. It makes FAR more sense for one of you to buy the home and the other pay rent to live there with the owner. Consider that one of you is eventually going to want to eventually move and purchase a new home for yourself, that’s going to create a situation where one of you is going to have to buy out the other’s half of the house, with a whole new/extra set of lawyer and closing fees. If one of you wants to buy but is short on the closing costs, consider taking a lump sum from the other one as a bunch of months rent up front. I closed with less than $5k in the bank…my fees totalled $4400 or something after 6% seller consession.
Terrible idea. You need a role model.
don’t buy a house you can’t afford to carry by yourself. if you can carry a house by yourself don’t sign with somebody else unless you are married.
All kinds of ugly scenarios can happen. what if one of you gets sued (for any reason), what if one of you loses a job, gets sick, meets a girl, dies, burns part of the house down… there are a million things that could make this ugly and almost nothing to gain.
Terrible. I have a friend who did this and now they pay half of a mortgage for a home they don’t live in…
are you buying to live in the house or buying to rent out and make some $$ in the future?
I would buy it yourself. Or have them buy it.
There’s a mathematical equation for this.
Money + Family / Friends = Disaster (99.9% of the time). I try to avoid even working for friends at all costs.
You should use your half of the mortgage to buy a brain, if you ever consider this.
lol at article from 1984 as justification
lol I didn’t even see that.
I doubt if you could even get a mortgage this way today.
Do it. I like posting in legal advice threads and this plan will almost certainly result in one.
Good point. Any car guy knows the best way to learn something is to break it and then have to fix it. This is certainly going down that path.
He could definitely get a mortgage that way, gay couples do it all the time. There is no stipulation that you have to be married to purchase a house together, as long as you both sign on the dotted line and have the financial credit to get the mortgage.
Definitely not saying it’s a good idea, in fact it’s quite the opposite. There is no way you guys are going to see this mortgage through the full term (30 or 15 years) and I am sure one of you guys will have a girlfriend and get married and want to move out and have a house without a “roommate.” It happens all the time. At this point you’ll either be the one moving and trying to sell your half of the house or you’ll be the one staying and trying to purchase the other half. So many things can go wrong in the future. What if you have a falling out and the other guy doesn’t pay his half of the mortgage, you’ll be paying the full price to live there and he will still get half the money when you sell it.
That’s the thread. Lock 'er up.
I bought my house with my, then, girlfriend…definitely possible…Definitely not a good idea.