Cotswold Lifestyle

Welcome to my Lifestyle Blog from The Cotswolds

Advice for Buying a House with Someone Else

Of course, there are advantages to combining funds and buying a home or investment property that you might not be able to afford on your own. However, buying real estate with someone else can easily damage your finances and your relationship if you’re not careful. Do your homework ahead of time and make sure you and your friend both have the income to meet the monthly expenses of the investment.

If you’re looking for homes for sale in Vancouver, know that you’ll need to act fast and make your bids competitive if you want to stand out in a crowded market. Since this market is so competitive, you’ll need to know where to look and to work with an experienced real estate agent. This is why many home buyers are partnering up to buy real estate. 

Pros

Some folks are discovering that it’s exceedingly difficult to qualify for a mortgage on their own. But with two people signing the mortgage application, the odds of approval increase. Buying a home comes with the challenge of getting a mortgage loan. Some lenders have tightened their standards with regards to credit scores, existing debt, and down payments. As a property owner, you are responsible for paying for utilities, maintenance, and repairs, in addition to the mortgage payment. The extra expenses that come with homeownership scare some people. However, if you have a partner to share these expenses, the burden is cut in half. Plus, sharing expenses improves your personal finances by giving you the opportunity to build your savings account or pay down debt.

Cons

In a perfect world, you and your partner will always get along – but, let’s be honest, disagreements are likely to occur. When you rent an apartment with a roommate, it’s easier to walk away and break a lease. However, it’s not so simple when you own a house and have a mortgage. Also, you may be responsible and pay half of the mortgage payment and utilities each month. Unfortunately, your roommate may come across hard times and start to miss payments – financial troubles can strike anyone at any time. And if your roommate doesn’t have any savings and can’t pay their share of the mortgage, it could affect your credit rating. Since both names are on the mortgage, you’re both responsible for payment – meaning the bank will report you as well as your roommate to credit agencies for non-payment or in the case of foreclosure.

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