When buying a property in NJ, am I better off buying a smaller place by myself, or a bigger place w/ a friend?

Question

I'm debating buying a property w/ my girlfriend in NJ, however I don't know if the tax benefits would be greater if we both buy places.

We live together and if we both buy properties, only one of us will get the tax breaks...

Answer 1

Hello, I agree with the others. In general this is a bad idea. Also most folks overestimate tax benefits of owning a property. People sometimes look at tax breaks first. I have had this conversation every time I discuss finances with people, tax considerations in general should be calculated, but NOT drive your decision. Have you actually calculated the costs and taxes? Sorry probably not, so that might be the first step. Yes you have a reduction of taxes, but your total costs will be higher than renting, and when you get hit with that first big repair, you are probably at break even.
Buy something you can afford yourself, then if someone lives there they pay $X of rent. Real simple. Also you need to layout some clear guidelines. Just beacuse a girlfriend/roomate does some painting or landscaping does not make them an owner. Likewise if a water heater goes out, you don't ask them to split the cost.

Answer 2

YIKES!! Do NOT buy a piece of property with ANYONE except your conjoined twin!!

Holy Cow! That is a BAD idea!

You will lose your money, your girlfriend, and your property.

No! No! No!

Find me ONE person for whom this worked out and I'll find you 1000 for whom it did not. We're not talking taxes, here, we're talking LIFE! HAPPINESS! FRIENDSHIP! MONEY!

No! Don't Do THIS!

Answer 3

OMG Friends and business, never....ever...mix. Eventually, you willd end up not being friends. The same goes with relatives.

Go smaller....stay independent. Trust me, on this one!

Answer 4

ONLY WAY TO HAVE A TAX BREAK IS TO MARRY. JUST HAVE TO THINK THROUGH ALL OF THE PROS AND CONS.