Things To Talk About Before You Buy A Home With Friends

If you don't quite have the financial means to buy your own home but you no longer wish to rent, one solution to consider is buying a home with friends. Whether you're single and partner with a couple friends to make your purchase or you're married and find another married couple in a similar situation as you, this sort of partnership can make you a homeowner. And, provided that the house you buy is big enough, each person can easily have his or her own space so that the residence doesn't feel cramped. Buying a home with friends isn't a decision that you should make lightly and should be consulted by a real estate agent. Here are some points to discuss before you move forward in this direction.

Breakdown Of Finances

You'll want to have a clear understanding of the finances of buying the home with friends, as well as how things will go when you eventually sell the home. It's a good idea to make up a contract to this effect and have everyone sign it in the presence of an attorney. A simple way to divvy up the finances is for each person to contribute equal amounts. This means that each person puts in the same amount towards the down payment and takes equal turns making the mortgage payments. When house repairs are needed, the bills should be split evenly. And, when the house is finally sold later on, any profits should be divided evenly.

Understanding Of Chores

Every person involved in buying the home and living in it should have a clear understanding of how the chores will get done. Don't assume anything; instead, make sure that the rules are clearly defined. For example, if someone enjoys mowing the lawn and will make this one of his or her regular tasks, what will others do to compensate? Someone may wish to do the vacuuming throughout the home, for example.

Creation Of Rules

You want the process of living with friends to be enjoyable for everyone, which means that it won't hurt to make some house rules so that everyone is on the same page. Think of things that could potentially lead to conflicts. For example, what is your policy on overnight guests? Or, how will you break down the buying and consuming of groceries? It may seem like overkill to go through these matters in detail, but investing time talking about these things in advance can make things easier once you move in together.