Ingredients for the Joint Homeownership Melting Pot

Even though home prices are the most affordable ever and mortgage rates are at the lowest in decades, there is still a population of homeowner “wannabes” who aren’t in a position to buy.

One work around is to split the purchase with a friend or relative who is in the same boat. You’ve often heard not to mix business and friendship, so before you put money in the pot, take precautions so you won’t get burned.

Size-Up Your Business Partner. Will they do their part in keeping the yard maintained, house cleaned, and fixing minor repairs, or prefer to hire a landscaper, maid and handyman? Who is less eco-conscious and leaves the furnace or air conditioner running on full blast, even when not home? Is your potential partner the type to nickel and dime you, or more apt to split things “even steven”?  No matter how you view it, this is an investment and you don’t want it to fold due to expenses unaccounted for. Knowing how in sync you both are (or not) in business could strengthen, or break, personal ties.

Develop a Business Plan. Having an iron-clad agreement is a no-brainer. Not only should you put the financial details in writing, but you shouldn’t enter the contract without understanding each other’s non-financial expectation. Are you both open to a fixer-upper, or something turnkey? What about the style of home? Contemporary or traditional? One-story or two? Are your décor styles complementary? What are your location parameters?

Document your wish list so you both stick to the plan when house hunting – after all, even though this is an investment, you will be living there, so all owners should be happy with their compromises.

Do a Mock Start-up. Even after you’ve analyzed it to death, the best way to really know how co-ownership will work is if you have co-habitated prior. If you’ve successfully rented together before, chances are you’ll be great roommates again. If not, you may want to try co-renting a house for a year, then determine if you’re both ready to sign off on a longer commitment.

ABOUT ME:

I live, work and play in Conejo Valley and specialize in Agoura Hills and Westlake Village real estate.

Where you live is more than a roof over your head. It should improve your quality of life – spiritually, emotionally and psychologically.

In my home and garden articles, you’ll find some great tips on how to make your house, not just a home, but a sanctuary.

Through my blog, I hope you’ll also gain some insight and find tips and resources that will help you navigate through the current market, whether you're buying or selling.

Have any tips to share? Please do so in the comments section or connect with me via: My website, Email, Facebook, Twitter, YouTube, or LinkedIn

Thanks for reading!