Buying or selling residential property is a complicated endeavor, and it is a process that has been more difficult in the past few years. Potential Tennessee buyers who have been frustrated by the cost and complication of buying a home may consider alternate or non-traditional ways to own property, such as buying a home with friends. However, this is not a beneficial choice for everyone.
The intent of buying property
Regardless of how well two people get along, the benefit of friends buying a home together should be carefully weighed against the potential for complications. An important factor in the success of this option is whether the property is intended as an investment property, or if the two friends plan to reside in the home as roommates. By pooling resources, buyers may be able to afford a home that otherwise would not be an option.
In addition to increased purchasing power, friends may be able to get into a home sooner than if they were buying on their own. Mortgage payments are also more affordable when shared between more than one person. However, there are some risks if the friendship ends or the two parties no longer want to live together.
Protecting one’s interests
When buying a home in Tennessee, it is important to take steps to protect one’s legal and financial interests. This is especially important when multiple people are buying a home together. It may be beneficial to discuss this option with an attorney to determine what steps are necessary to ensure that a buyer is not exposed to unnecessary risks.
