Home ownership always comes with some age-related pressure. By the time you reach your 30th birthday, you’re almost desperate to own a house by hook or by crook, whether you can really afford it or not.
This is why the idea of buying a house with a friend is becoming more attractive to Alaskans. Especially if you’ve been renting a space with someone for a while now, the concept of co-buying a property doesn’t seem new. Its only difference is that your monthly payments build equity — the percentage of the property you actually own.
Despite its inherent benefits, nobody should really buy any piece of real estate in Fairbanks, Juneau, or anywhere else in The Last Frontier with a non-spouse without considering all the negatives that might come with it.
People Always Change
Everything might start equal, but you can’t really guarantee that would remain the same for the next 15 to 30 years. Even family members that take this route sometimes don’t work out because situations change.
You and the other party might want this setup right now, but what if one of you decides to marry and live a life with more privacy?
Legal Disputes Are Possible
Getting a mortgage is easily the biggest debt one could ever incur in a lifetime. But more than just the financial responsibilities, co-owning a property involves more complicated legal aspects, such as taking the title and discussing survivorship rights and inheritances.
Other than anticipating the possible issues, all co-owners must also be honest and trust each other to avoid disputes later on. One could easily exercise their right to personal interest at the expense of the other.
For instance, using the property as collateral for one’s personal loan may be disadvantageous for the other co-owner.
Relationships Get Broken
If things go wrong, saving the relationship could be harder than saving the house. A single conflict might create some friction between all co-owners. Because being underwater in your mortgage is no shallow financial hole to get out from, finding yourselves in this dire position might cause a rift between the two of you.
Consulting an experienced real estate agent is paramount before entering into this type of agreement. Co-buying a house with someone else could be the worst decision you could ever make, and you might not realize it without professional advice.