we save on interest or we each have a nice down payment on our own houses.which is best?
2007-02-20 11:43:54 · 5 answers · asked by nina_aka_babydoll 3 in Business & Finance ➔ Renting & Real Estate
Not clear on the question.
Its not usually the best idea to buy real estate with friends because this is a long term commitment and your interests may not be the same for the whole time. What happens when one partner wants out and the others are not able or willing to buy them out? What happens if one partner is not able to pay their share? Will you foreclose on them? Can you?
The best solution is for you to buy your own smaller place and get a roommate. Not that it never works out - just thatthe stakes are pretty high so its best to set yourself up with the best chances of success and try to limit your chances to fail.
2007-02-20 11:53:21 · answer #1 · answered by sdmike 5 · 0⤊ 0⤋
Buying a house with two other people is not a good idea.
Now that being said, if you are hell bent on doing this draw up a document between the three of you that tells how the property is to be divided in the event that someone fails to pay, how long they have to catch up, ho one or two can buy the other out in the event that need to be done. Get this document notarized.
It might be better to invest together in real estate instead of purchasing a property for the three of you to live in.
You might try a 4 unit place with one side being rented to help with the mortgage. When there is enough money in the till allow one person to move out and so on until all have accomplished what you want to accomplish in this transaction.
I hope this will be of some use to you, good luck.
"FIGHT ON"
2007-02-20 21:08:35 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
Your question is hard to understand. If two people buy a house together, the goal should be to develop equity and walk away with a large enough profit so that each can buy a house on their own.
This is done by prepaying the principal on a monthly basic. This extra payment of principal will result in big dividends in the future.
2007-02-20 19:51:03 · answer #3 · answered by whatevit 5 · 0⤊ 0⤋
I would never buy a house with someone unless you are married to that person. You might start out as friends but it quickly changes if you have differant opinions about things.
2007-02-20 19:53:03 · answer #4 · answered by honey 4 · 0⤊ 0⤋
NOT A GOOD PLAN--NOT A GOOD IDEA.
NOT GOOD THINKING.
NOT WORDED WELL EITHER.
2007-02-20 20:30:11 · answer #5 · answered by cork 7 · 0⤊ 0⤋