Renting a house/apartment with one or several friends is a great way to save money and enjoy the company of other people. However, while this step is rather common during college and after high school, it’s rarely considered a long-term arrangement. As soon as one roommate gets married or is able to afford their own place, they go their separate ways. What if there’s no marriage in sight and the financial prospects of each individual involved are not enough to get their own property? Well, if the present roommate situation works, and you get along well, buying a house with your friend(s) can be a smart investment. Before you make that big move, you need to be aware of some things.
The Pros of Buying a House with Your Friends
We’ve already mentioned some of the reasons people make this decision. The financial benefits are obvious. A joint property means that you’ll share all the costs including the deposit, transaction costs, mortgage payments, decoration, maintenance, monthly payments, repairs and household bills. Due to high prices on the housing market, many people don’t even consider purchasing a house. Joint ownership can be a useful solution for two families who could, in that way, afford a bigger property.
Agreeing on the Things that Matter
When the ownership status is regulated properly (each tenant can own different shares of the property and tenants can choose to leave their shares in a will or sell them, etc.), owning a property with a friend can save you a lot of trouble. It’s important to agree on things that can largely impact your co-habitation, especially money-related issues. That can include setting up a joint bank account for paying the mortgage or any other agreed shared expenses. A household rulebook is also a crucial point of discussion. You need to be very clear on the rules regarding guests, partners, pets, smoking, etc.
Starting from Scratch
Different people have different needs. Finding a property to meet the needs of one person (with or without a family) is hard. Finding a property that will suit two different people is next to impossible. If that’s the case for you and your friend, building your own home may be a better idea. This way you will be able to make everything just the way you like it from the ground up. The design can be adapted to provide you both with the privacy you need in order to lead independent lives. According to custom home builders from Brisbane your home can be built to individual specifications, but it can also be changed during the building process, so you can follow the construction and make decisions that will make cohabitation easier.
Consistency in Décor
Congratulations, you’ve bought/built your own property. Once the moving in process begins, you will need to decorate the place. Much like with the very design, it is difficult to choose one décor style that suits different persons. Of course, your bedroom, bathroom and other personal spaces should be off limits to the other tenant, and vice versa. If there is a common area, it should be decorated in a neutral manner, except if both tenants agree on one specific style. Although you and the other tenant will decorate your own spaces based on your preferences, keep in mind that there should still be a certain consistency in décor, so try to settle on one color palette or design era.
A Trial Period
You and your best friend get along great. You love spending time with each other, drinking coffee and hanging out in a cocktail bar. That seems as a great foundation for buying a house together, right? Wrong. If you have never before tried to live together you can’t be sure that your relationship will remain just as ideal. Maybe you’ll hate that your friend is smoking in the morning, or they will dislike your early bird habits. Maybe one of you is irresponsible with money. There are too many maybes to count. That is why it is better to have a trial period of renting a place, before going down the more permanent road.
Buying a house with your friend(s) can be a great decision, both financially and when it comes to social life. Still, there’s the danger of losing both a friend and an investment, so be very careful.