In a place as expensive as New York, it’s tempting to think of pooling resources with friends to buy a bigger place than each person could afford on his or her own. Such an arrangement (in which the purchasers typically hold title as Tenants as Common), each owner has an equal right to possession of the property, and any owner can transfer his or her interest independent of the other owners. For this reason, it’s crucial to define up front any restrictions on the transfer, such as giving the other owners a right of first refusal. You really have to trust the others, as chances are you will be jointly and severally liable on the mortgage, which means that if one member flakes out or runs into financial problems, you’re left holding the bag. Which isn’t to say it can’t be done, but we’d be pretty darn wary. Have any readers done this, for better or for worse?
When Friends Buy a House Together [NY Times]
Real Estate Swinging: Couples Doubling Up [Brownstoner]
Illustration by Tom Bloom