by Christy Bieber | Published on Aug. 4, 2021
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You might be able to afford a larger house, but this could come at a cost.
Are you thinking about buying a house with a friend? Whether you are purchasing an investment property or a place where you will live together, it's important to consider both the pros and the cons of making the decision to co-purchase a property.
Before you jump in to a joint mortgage, consider the advantages and disadvantages of buying a house with a friend.
Secure access to The Ascent's free guide that reveals how to get the lowest mortgage rate for your new home purchase or when refinancing. Rates are still at multi-decade lows so take action today to avoid missing out.
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There are some great pros to buying a home with someone else, rather than trying to go it alone. Here are some of them:
Unfortunately, there are some downsides to buying a house with a friend, as well:
Before you decide to buy a house with one of your friends, think carefully about how much you can trust the person and whether you are on the same page about ownership. Consider drafting a detailed ownership agreement specifying what happens if either person wants to sell, who is responsible for what expenses, and what will happen to the house when either of you dies.
By addressing these issues up front, you can maximize the chances that you'll make the right choice when it comes to co-ownership of a house.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
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