Buying A Home With A Friend - Mortgage With Vadim!

An interesting new home buying trend emerging among millennials is home purchase transactions that are completed with a friend. It’s a creative solution to the housing market given tough qualifying rules and high prices. Pooling your resources is a great way to take you from the fringes of homeownership to landing what you really want and getting a start on wealth building. As an expert in the field, Mortgage With Vadim wants to help you understand the benefits of buying a home with a friend.

This trend is becoming more common today, as friends, relatives, and unmarried couples are opting to co-buy homes in response to an extremely challenging market where inventory is low, prices are significantly higher than just a few years ago, and bidding wars are part of the process.

Here are a few of the things you’ll want to talk about before you get started:

Detached, condo, or something else? How many bedrooms/bathrooms, and what amenities do you both want? Are you the fixer-upper type, or do you want move-in ready?
What can you both afford? Remember to consider closing costs, including lawyer’s fees. Put a budget together that includes property taxes, any condo fees, heat and hydro, internet, cable, anticipated maintenance costs, and household expenses.
Whether ownership is divided equally among the buyers or by some other percentage based on what you bring to the purchase and ongoing costs.
How do you plan to divide and use the space within the home, and any mechanism for dealing with conflicts?
How are you going to divide ongoing and one-off expenses?
How do you want to handle household chores, repairs, and maintenance?
What happens if one co-owner wants to sell their share for any reason? Will the other owner(s) have the first right of refusal to buy their share? And how will you establish a fair market value for that share?
What if one person is unable to afford to continue to pay their share of the mortgage for any reason?

Takeaway
Consider and thoroughly discuss these things before deciding to move forward with buying a home with a friend. These considerations can also apply to family members, girlfriends, and boyfriends, in case you’re wondering. Today many young millennials get their money working for them early through property partnerships with friends. Buying a house with someone has lots of benefits. It may be easier to qualify for a mortgage. You get to split all your monthly expenses and benefit from growing home equity, and the interest you pay on the mortgage is tax-deductible. Not to mention the obvious, unlike renting, you and your friend will be homeowners! Yes, there will be challenges. But as long as you’ve found the right roomie, the homeownership journey will be no sweat! With just a little pre-planning, you and your bestie could be hosting your joint housewarming party!

If you are looking for a mortgage broker in Vaughan, ON, reach out to me at (416) 894-5315 or send me an email at mostovoyvadim@gmail.com. With over ten years of experience in the mortgage and real estate industry, my reputation and long-standing experience allow me to negotiate great rates and access limited-time mortgage specials. As a mortgage professional, I will stay with you for the life of your mortgage with advice and opportunities.

I offer services such as home purchase mortgage, refinance mortgage, debt consolidation, first-time home buyers, and mortgage renewal to clients across Vaughan, Toronto, Richmond Hill, Markham, Newmarket, Mississauga, Milton, Oakville, Burlington, North York, Etobicoke, Kleinburg, Scarborough, East York, North Toronto, GTA, and the surrounding areas.

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