B46 - Buying a Home with Other People

You may be thinking of pooling your money with relations or friends to buy a home together.

This is a big decision. Buying a house is generally the biggest financial outlay you will ever make, and you will be entering in a contractual agreement with others (as well as with a bank!).

You will have financial and legal obligations, and you need to consider what will happen to your share of the property if you die or your circumstances change.

You may consider buying a home with others for any number of reasons, for example, for company or reassurance, to help your finances, to help a family member into home ownership, or because a disability or ill health means you need more support with your day-to-day living.

Regardless of your circumstances or who you decide to live with, you might like to think about having a written agreement with them that covers such things as splitting bills and sharing housekeeping tasks and how insurance and repair costs will be handled. A written agreement might also cover what happens if you should change your mind - it will give you an exit strategy if things don't work out. This is quite common and is called a co-ownership agreement.

Even if you don't have a written agreement, you need to agree on some ground rules before anyone moves in. You might also benefit from creating opportunities to regularly (eg, every second month) check how the rules are working for everyone and whether you need to revise any.

You will need to be flexible and willing to deal with problems calmly and openly when buying a house with others. Having some ground rules that can change as you get to know each other can help build shared understandings, expectations and trust as you adapt to living together.

Pros

Cons

Homework

What do I need in order to take this option?

Could this option limit my future choices?

Yes, this option could affect future decisions about your finances and living arrangements.

For more information