Millennials Team Up to Buy First Homes!
A new trend is appearing in the United States. An analytics firm, Attom Data Solution, monitors real-estate data and discovered that co-buyers with different last names who purchased a home increased 771% from 2014-2021. What is a possible source for this new home buying trend?
Rising home prices, large amounts of student debt, and delaying marriage have priced the Millennial generation out of buying first homes. Millennial home buyers want to get in on owning a home and don’t always want to live alone. The solution is to purchase a home with a partner, friends, or roommates. The affordability of purchasing a first home is made easier with two or more incomes.
Thinking of teaming up with your best friend to buy a home? Tenancy-in-common may be a good option because it allows for each person to pass their ownership to their heirs, and not the co-owner of the home. If you’re buying with a partner or family member, consider joint tenancy when deciding how to hold ownership of the home. It allows for unmarried couples and family members to pass along their ownership to the co-owner in case someone dies.
Other couples and friends who purchase a property to rent out or as a vacation home can form a limited-liability company, also called an LLC. This allows for co-owners to be protected from financial liability, especially when renting out a second home or using it as an Airbnb.
The best thing to do when choosing to buy a home with someone other than a partner or spouse is to consult a real estate attorney. They can assist in writing co-ownership agreements that can protect each owner from life events like marriage, job loss, and even deciding who hires the plumber if the toilet backs up. Real estate attorneys also help decide the action steps if one owner moves away or wishes to sell their portion of the home.
What lawyers can’t help with: deciding who gets to host guests on what day, and how well each owner’s dog gets along with the other. Homeownership, whether with a spouse or a best friend, always comes with the need for aligned interests and conflict resolution.
Need assistance on deciding whether you and your best friend qualify to buy a home together?
Visit us at https://mortgagecraft.com/ to connect or call us at 717-560-0546 for friendly advice on how to move forward. We can even connect you to real estate attorneys who can assist you on your home buying journey! Happy house hunting!
Article Source: The Wall Street Journal
Article Title: “Millennials Team Up to Fulfill the Dream of Homeownership”
