Buying with others

Yes this is one of the best ways to end up suing each other

Posted by: guest at March 25, 2008 4:03 AM

Really think this through. We had a similar plan and have watched it evaporate as insecurities about the other couple's future have come to the fore because of the crappy economy. Neither knows what their future will be financially, she's finishing school here and he's getting job offers from other states, and they want to have another child. Who knows where they're going to be in five years and, if they decide to bail, we're stuck with having to figure out how to cover the mortgage. Neither I or my SO wants to have go from being a co-owner to a landlord. If you do this, I'd strongly recommend a written contract from the get-go. Sorry to pooh-pooh your idea, but we found ourselves with more questions than we were comfortable with as buyers.

You and another couple will invariably have differing views on neighborhoods, amenities, and features of the home. Who gets the downstairs duplex with the garden? Who gets what square footage? Are there separate entrances? Do you share outdoor space? Laundry? Utilities? What about repairs? Who pays and how much? After all, everybody's got a stake in the place's value. How much will seeing one another all the time affect your relationship? If you do go with an investor, well, who's the landlord, exactly? Who interviews and selects tenants? Who's responsible for repairs, complaints, collecting rent, etc.?

That said, I've seen this arrangement work in another large city where three couples bought a three-flat building and turned it into a legal condominium. There's that option, but all parties signed a legally binding agreement to divvy up the mortgage based on unit value and not to sell for ten years. Each person is an officer in the condo corporation and is responsible for certain things legally. It's worked out really well; they got lucky because the area they bought in is now one of the choicest areas, and each could easily sell their individual unit now for about quadruple what they paid, even in this economy. They also all knew each other for a loooong time beforehand, but were not bestest buddies. So there was trust but not the sort of expectations of truly intimate friends.

Posted by: guest at March 25, 2008 10:13 AM

Do a search for this topic on Forum because it's been discussed in depth many times with links to good info on legally how to set up a condo and attorneys who can do it.

I have never ever once seen somebody say it was a good idea or a good experience if they actually went through with it. I'd never do it.

The only way to do it would be 3 or more couples as 10:13 says. But as for only 2 couples, ugh, nightmare waiting to happen.

Posted by: guest at March 25, 2008 11:13 AM

Having lived in a small coop, I'd never do it. Your issues would be similar - how much to spend on fixing things (and things always need to be worked on in old houses), how nice a job to have done, whether to focus on structural stuff or how it looks - hell, them moving away is the least of your issues - that you can deal with with a legal contract, or with a condo or coop structure - the other stuff is ongoing and cannot be figured out ahead of time. Good way to lose friendships, I would think, if it is friends you are planning on doing it with.

Posted by: guest at March 25, 2008 4:07 PM

Having lived in a small coop, I'd never do it. Your issues would be similar - how much to spend on fixing things (and things always need to be worked on in old houses), how nice a job to have done, whether to focus on structural stuff or how it looks - hell, them moving away is the least of your issues - that you can deal with with a legal contract, or with a condo or coop structure - the other stuff is ongoing and cannot be figured out ahead of time. Good way to lose friendships, I would think, if it is friends you are planning on doing it with.

Posted by: guest at March 25, 2008 4:08 PM

My landlord did this and it turned out disastrously for them. Despite this I almost did it and I'm glad I didn't. Avoid at all costs unless you want to end up in court.

Posted by: guest at March 27, 2008 8:31 PM