So are you planning to buy a house but do not have enough funds? A simpler way of funding your dream house is buying it along with your friends or even with your family members. By having someone to share your expenses, a person can easily buy his dream house. Joint ownership offers a lot of advantages. Therefore read on for advice and tips on how to make a purchase with other people.
If a person plans to invest in a property, an appropriate agreement should be set up in advance. An open discussion, about the process of funding the house, the time period for which the parties plans to stay together and also about the possible consequences that may occur if one person wants to sell his share, should take place between the parties which are planning to buy the house. Correct documentation should be prepared to avoid any legal problem in the future.
The main advantage of joint equity is the reduction of financial burden on an individual. By having a joint ownership, costs which include the down payment, cost of transaction, loan repayments, maintenance and repair cost and the house hold bills can be shared. By investing in a joint home ownership, a person needs not to stay in the house as the other party can take care of the maintenance. A person can always rent out his portion to cover the mortgage payments.
Setting up of a joint account at the bank is always a good idea. All the people who own the house can put in their share from which the loan payments can be later on withdrawn. Money from this account can also be used for other shared expenses. A record of all the expenses and payments can be easily kept in this way.
When owning a house jointly, certain house rules are required to be made which should be followed by everyone in the house. These rules may include all the activities that are being carried out in the house as well as the home responsibility should be shared equally among all the occupants.
An important area of discussion that should be discussed openly is, “what to do when one owner of the house wants to sell it while the other wants to keep it”. This matter should be resolved out peaceful and if any dispute takes place, an agreeable compromise should be reached out, for that problem. Whatever the situation may remains, make sure that a person is well aware of his obligations and rights in the joint ownership.
Getting a joint home loan has become easy as specifically designed mortgage for co owners are easily available at various banks and financing institute. Before going for a joint mortgage, it is always better to seek separate financial advice according to a person’s financial situation.
Purchasing a house with co-owners is a successful way of investing in a property with fewer resources. However if proper attention is not given to details, such investments can be the cause of lifelong stress. Therefore honest and open communication is the key to successfully owning a property even with less amount of money.
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