Houses are an expensive investment and some people find it difficult to afford the mortgage deposit, let alone the mortgage payments themselves. People are looking at less conventional options. For this reason, co-buying could likely be the next big thing for first-time home buyers.
Buying a House with University Housemates
By the time you leave university you have likely spent a lot of time living with the same group of people. If you know you enjoy living with them, and you are willing to continue buying a house together could be a wise decision.
In many cases roommates can’t afford to live separately, but living together saves money for all involved.
Buying a House with Family Members
Since brothers and sisters generally grow up together, they are used to living together. So if neither of them can afford to move out and get their own place, they can always explore the option of buying a house together. Family living together provides a great support system, both financially and emotionally.
Pros and Cons of Co-Buying
There are both pros and cons to co-buying a house. One of the pros is that you will always have someone to keep you company. Another benefit is that you will save money by splitting the utility bills and mortgage with whomever you are living with. Safety in numbers also applies to co-buying. One major advantage of co-buying a house with someone is that you can warn each other in an emergency, such as a fire or break-in.
Some of the cons of co-buying include financial responsibility. If you are living in a house you own with someone else and they leave unexpectedly, you will all of a sudden be burdened with having to pay the mortgage and all the bills on your own. This can cause serious problems for people and may be one reason why some people choose to avoid what many describe as the ‘co-buying fad’.
Another con of co-buying is that you are equal owners of the home. If you want to sell it and they don’t, you won’t be able to until they consent to selling it too. This could lead to a major breakdown in the relationship you have with your co-buyer, and that can have lasting effects.
Money issues have broken up many relationships, friendships, and even marriages. If you enter into a co-buying agreement you are putting yourself at risk of this happening to you.
Whether co-buying is the right option for you or not, if you are looking to purchase a home you can do so through Linden Homes. They work with both co-buyers and individual buyers to help them become homeowners.
Time will tell whether or not the trend of co-buying a home becomes more popular amongst most first-time buyers. It may eventually cause too many problems to be worth it. It may take years to determine the long-term effects of entering into a co-buying agreement.