What you need to know before buy a vacation house with friends
There are a lot of questions around how to buy a house with friends or family, so we created a list of the basics you need to know before considering it.
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Joint ownership is becoming an increasingly popular way to afford a vacation home, or even a first home, as home price and inflation soar. Between April and June 2020, 11% of buyers of all age groups purchased as an unmarried couple, according to the National Association of Realtors, a 9% increase from the previous year, indicating a big shift in attitudes toward nontraditional models for home ownership.
There are huge upsides to owning a property with friends. First, what was once a pipe dream can suddenly become reality once you combine multiple incomes to buy a vacation home. Maybe you’ve got the budget for a little cottage on a remote lake with bare bones amenities. When you pool your money with your best friend and her family, suddenly you’ve got the funds for a 4-bedroom luxury cabin on Lake Tahoe with a boat launch. Your money can go a lot further—and the potential for future rental income and equity becomes that much greater.
However, there’s a lot to sift through logistically when it comes to making a purchase like this, and it can be easy to overlook the emotional side of the equation and the potential for conflict that a complex financial transaction can often create when mixed with relationships.
