Buying a house with a friend: pros and cons
Do you fancy living like in the series La Galère, where four friends move into the same house together, with their children, but without the dads?
Is buying a property with a friend a good idea in reality, or just on TV? There are pros and cons to consider!
Buying a home with a friend can be an interesting option for home ownership. However, this idea seems to appeal more to younger buyers. Rising interest rates, – coupled with shortages in certain sectors and rising house prices, are creating a perfect storm to reduce opportunities for affordable home ownership.
What’s in it for friends as co-owners?
Buying with a friend is becoming an increasingly considered solution here: up to 25% of potential buyers are seriously considering it. The idea is to share the down payment, monthly expenses and equity in the property. What’s more, it’s easier to qualify for a mortgage when there’s more than one salary in the balance.
Moreover, by combining salaries and down payments, it may become possible to acquire a more luxurious residence that better suits the needs of the occupants. It is also an excellent way for the two friends to make a profit when reselling it in a few years, and thus have enough money to buy a house alone or as a couple.
Is it possible for two families to live together?
In the case of single and single-parent friends, the interest is also in day-to-day management. Meals, cleaning, homework help, grocery shopping – all the tasks involved in running the household could be shared. If the children also have chemistry, cohabitation can be even easier. They’ll always have a friend to play with! More anxious people may also find it reassuring to live in a house full of people, with the reassuring presence of a second adult, in case anything goes wrong.
What are the risks of buying real estate with a friend?
This type of transaction also presents risks, such as disagreements over day-to-day living (who takes care of the household?), legal problems or changes in everyone’s lives. Buyers need to think carefully about the consequences and possible repercussions of such a major commitment. It’s not easy to get out of a mortgage, either financially or emotionally.
How to ensure that friendships last in cohabitation?
Successful buddy-buyer stories are based on a number of factors:
- Are the co-owners in the same life stages? For example, if one loves to party and the other needs a strict sleep routine, this could cause flare-ups.
- Can co-owners put the same amount down and separate the mortgage as well? Real estate generally increases in value over the years, so it will be simpler to separate everything into two equal parts upon eventual resale.
- Will cohabitation be easy for all occupants? Or will some find it difficult to live with people outside their immediate family on a daily basis?
In any case, if you’re thinking of buying a property with someone who isn’t your spouse, make sure you consider all the legal, financial, day-to-day and emotional aspects. You don’t want to lose a friendship along with your home!
