Posted on 09/24/2024 4:25:40 AM PDT by where's_the_Outrage?
Buying a home with friends sounds like a dream. Until you try to get out.
Celeste King invested $100,000 to buy and renovate a lake house with two friends near Austin, Texas, in 2021. She envisioned weekend getaways, work retreats and lazy days at the pool—at a fraction of the cost of solo ownership......
The number of co-buyers with different last names hit a record in data going back a decade in 2021. It fell 29.5% over the following two years, according to real-estate analytics firm Attom Data Solutions. The percentage of co-buyers who reported purchasing with friends was 7% this year, compared with 14% during the same period in 2023, according to Zillow.
The appeal of buying with friends stands to recede further with the Federal Reserve cutting interest rates, real-estate analysts said. Lower mortgage rates could make traditional homeownership more affordable to first-time home buyers.
Depending on when the home was co-purchased, falling rates could open up the option to refinance or move to a new home with better terms.
When co-ownerships end, it is usually not because of conflict, according to real-estate lawyers.
“The vast majority of people who want out are leaving just because they want to move, or they are getting married, or their job is in a different city,” said Andy Sirkin, a real-estate lawyer specializing in co-ownership agreements.
But close quarters can spark difficulties.
(Excerpt) Read more at msn.com ...
Unless it's being done as a legal partnership it looks to me like a disaster waiting to happen.
“Can’t we all just get along.”
Timeshare with soon-to-be ex-friends.
Why it would seem like a ‘good idea at the time’, I have no idea.
You know what you should buy with friends? Tickets to a ballgame. That’s about it.
we won’t even let family stay more than one night much less friends stay over. peace, safety and privacy are paramount. better to buy a one bedroom and work your way up than but a “big dream house” and move in with your future enemies.
Truth! A Judge Judy episode in the making!
Obviously, none of the idiots grew up watching all the TV shows where the 2 friends/ neighbors buy a boat together..
How to lose friends.....get into business with them.
“...Buying with family is bad enough, but with “friends”.
Unless it’s being done as a legal partnership it looks to me like a disaster waiting to happen...”Buying with family is bad enough, but with “friends”.
Unless it’s being done as a legal partnership it looks to me like a disaster waiting to happen.>
This is the cold shower awaiting all these ‘OH SO COOL’ folks who never marry but live with their ‘partners’. Makes me laugh
It depends on what the meaning of the word ‘friend’ is.
This is what a contract with a “buy-out” clause is for. Although, I can’t imagine going into a deal like this with friends in the first place. However, people do this all the time with aircraft and deer leases they can’t afford themselves. Unless there is a strict set of rules that is adhered to by all parties, it doesn’t work.
This is usually a very liberal idea. The problem is that all the parties soon find out each others bad habits, and get to meet all the unwanted relatives that only show up when a party has something that nobody else in their family can afford. The best way to do this is for one party to buy the asset, and the others “rent” their time from them. That way, when the purchasing party eventually gets stuck with the asset, (and they will get stuck with it once the other parties discover there are rules and no free ride) then the purchasing party can easily sell the asset without any issues.
My parents bought a ski boat with neighbor/friends. In the 70’s. Worked out well for about a year. My dad bought out the neighbor’s interest in order to stay friends
I found out many years ago that you don’t even want to go on a week’s vacation with “friends”.
Gee nothing to legally bind friends but then they all are jointly and separately responsible for the mortgage. Ever been financially stiffed by a friend?
See it all the time on House Hunters. Two people who’ve been dating for a tear or so buy a house with a lot of talk about babies and marriage, often in that order. You always wonder. They’ll commit to a 30-year mortgage, but not to marriage.
I considered doing this at one time. Sure glad I didn’t.
Hmmm... It works for all the illegal immigrants...
In the Flintstones, Fred & Barney went partners on a boat. The first fight was what to name it. Fred wanted “Nautilus”, Barney wanted “Sea Queen”. They compromised their huge cartoon argument by taking the first three letters of each name. Then Wilma & Betty didn’t want to ride a boat called “NauSea” and it started all over.
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