People come to a stage in life when they want to own a home. They want to buy a home with a guest house perhaps, a home that will have everything they need. And for this reason, they’re ready to pool their resources in order to achieve the mutual goal. Buying a home together, or co-buying is not something new. It might’ve become more popular recently, but the shared-purchase approach has existed since a long time ago. However, there still are things that you need to be careful about this approach. So, let’s share some information about co-buying a house in Frisco, Texas. If you don’t think it through and set up the arrangement correctly, legal and financial consequences can be very serious, as well as the damaged relationships as the aftermath.
The reasons to consider co-buying a house in Frisco, Texas
It’s not hard to see the reasons for living in Frisco, Texas; neighborhoods are great and public schools are among the best in the state. Living in one of the fastest-growing cities in the nation has its advantages. On the other hand, the median home cost in Frisco, Texas, according to bestplaces.net, is $404,500. And since that’s not cheap, by most standards, it’s reasonable that someone wants to find an alternative. But, what is an alternative? Going through the moving process and having your relocation taken care of by reliable local crew only to end up owning a home to small for your needs? Or a home in a neighborhood that is within your budget, but that’s not the right one for you? No, the alternative we’ll talk about here is co-buying.
Choose your title
When two or more people decide to buy the same property and also agree to own it, that’s what we call co-buying. If you want to share the ownership of the house, you need to decide how you will take and hold the title. This title is evidenced by a deed that determines how the co-owners will share their title. These are the two main options:
- Tenancy in Common (TIC) – allows more flexibility in ownership. If you’re co-buying a house in Frisco, you don’t have to divide the property equally. Instead, the ratio of ownership can be in proportion to the invested money from each side. Also, co-owners can decide who inherits their share. With this option, co-owners can rent or sell their portion, even without the approval of other co-owners. Under tenancy in common, one co-owner doesn’t need the approval of the other co-owner to sell or rent his/her portion of the property.
- Joint Tenancy with the Right of Survivorship (JTWROS) – this option implies that the ownership of thé property is divided equally, even if the amount invested is not the same. Also, when it comes to the effects of inheritance, the surviving owner will automatically assume the shares. For these reasons, this option is more usual with couples.
Choosing one option over another can have a serious impact on your life. But, do you know what else can have a serious impact on our lives?
Be careful throughout the process of co-buying a house in Frisco
Try not to let the feelings about this purchase get overwhelming. You still need to be careful about this process and not forget things that are important. For example, hire a lawyer if you don’t understand the legal effect of the mentioned options. Also, don’t forget to plan your move, and to find packing solutions that are good for the planet, instead of just “winging it.” Co-buying is a big deal, but remember that this whole chapter requires your full attention.
Pros of co-buying a home in Frisco
You might not notice the pros of co-buying a home in Frisco immediately. When you hire Small World Moving Texas to help you out with the move, you might pay expenses of the move yourself. But, you’ll able to split down payment and mortgage payments, just as insurance premiums and cost of repairs. Also, once the time comes to pay the utilities or home improvement and maintenance costs, you’ll easily notice the biggest pros of co-buying. In your agreement, you can decide how to allocate these costs. Down payment can serve as a base for this decision. Or, if only one or some of the co-buyers will live there, you can allocate costs based on the time co-buyers will spend there.
Cons of co-buying a home
Yes, the costs of repair before moving in can be shared, there’s still a con to co-buying a home. The interest rate will be determined by the lowest score of one of the buyers. Also, in case one buyer can’t pay, the other buyer will have to. So, just as with anything, weigh pros and cons before you co-buy a house in Frisco and you’ll know whether you’re making a good decision.
Why co-buying is popular
Economic and social forces in the US are quire dynamic. In that climate, we find people moving from one location to another, often for a job. Besides that, there is a need for community, and there are new definitions of family. These are the reasons why some people choose co-buying as an alternative. For example, couples who don’t marry can still have their own property and have legal protection without worrying bout the aftermath of a split which will result in the division of assets. And the marriage rate has significantly fallen, comparing to the last couple of decades. The financial aspect plays an important role in the popularity of co-buying. People in the age above 25 who want to own a home, might not have money to buy it, which makes co-buying a compelling option.
You might be focused on the agreement, your obligations, and other aspects of this purchase. But, when co-buying a house in Frisco, keep in mind that this is, after all, a process of buying a home. And even though the co-buyers can help you, you should still be extra careful. You might even want to learn the best-kept secrets of selling a house so that you’re familiar with the other side of the process. Extra information won’t hurt you when co-buying a property.