Dreaming of moving to Florida near the beach but don't have enough money? Maybe you could opt for the option of buying it with the help of your friends. We bring you three important tips so that, at the moment of making this decision, you avoid any misunderstanding with your friends and everyone is clear about the goals and conditions of acquiring a community property.
Is this option right for you?
The main reason to consider buying a home with friends is that it reduces the amount of investment. And unlike timeshares or fractional ownership opportunities, when people agree and buy a property at market price, they get to enjoy the capital gains that are available in the conventional real estate market.
The best candidates for shared ownership are those who want to use the house a few weeks a year and rent it out the rest of the time. Between owners, they need to be comfortable sharing fixed expenses, such as tax payments, property management fees, utilities, insurance and repairs.
Seek legal assistance
For the protection of all owners when something unexpected happens, and to avoid misunderstandings and awkward situations, it is recommended that you hire a lawyer to explore the possibility of founding a corporation and then purchase the house through that company.
Owning a property with friends or family may seem like a great idea, but what happens when a few years later someone wants out of the deal for whatever reason? In this case, a lawyer specialized in the area can draft an operating agreement, which will clarify all sorts of general expectations among all the associated members. From how utilities will be shared down to how a purchase would work if one owner wanted to sell and the others did not. Therefore, with the valuable legal assistance of an attorney, you and your associated friends or family members will avoid any kind of discontent that could ruin the friendship or family relationship because of a real estate dispute.
Property search
When you have decided to purchase a beach house, you should take into consideration that the vacation property market is a fast moving one, and with multiple interested parties needing to agree on the best property, it is advisable to decide on your shared criteria before you begin any kind of search. And this is especially important if you are searching from afar, or if one person will be doing most of the house touring on behalf of the group. This way, when you find the right property, you can put together a purchase offer quickly and easily.
You and your associates in the purchase of the property should treat the entire transaction as a business in council. You can make an Excel file with possible options, list the pros and cons of each possible property and ask everyone involved to vote. This is why having an odd number of owners (or votes) is helpful, because this way, there will always be a majority.
Hire a reliable moving company
When you're ready to come up with a buying plan for you and your friends, it's time to organize your new beach property move. Hiring in advance a reliable moving company in Florida can give you an advantage to develop a smooth transfer so you can have all your belongings at home when you arrive.
Having a moving service for your items (especially when there are several people involved) will give them time to take care of other important planning details.
Bonus Tip
Having real estate consultants to help you find the best option in the locality is important when making such an important decision. They will have an experienced guide who could provide you with real estate options that could generate long-term capital gains.
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