How to Buy a Vacation Home With Friends or Partners

If you can't afford to buy a vacation home or time-share on your own, pairing up with a friend or partner may allow you to have your own little piece of paradise!

Instructions

Difficulty: Moderate

Things You’ll Need:

• Investment Advice
• Legal Counsellors
• Purchase Agreement
• Financial Calculator
• Personal Organizers

1. Make sure your visions for the use of the property are compatible before you buy.
2. Draw up a co-ownership agreement that spells out the ground rules for financial obligations and occupancy.
3. If you intend to split maintenance costs, list all expenses in advance. Agree on contribution amounts for such items as landscaping, remodeling and cleaning.
4. Decide if monthly mortgage payments will be equal or based on each person's income or use of the property.
5. Determine what will happen to the property if one owner leaves. Consider if the remaining party has the right to buy out the other owner's interest in the property. Specify how the value of the property will be determined, and how an appraiser will be chosen.
6. Hire an attorney to help you negotiate and draw up a co-ownership contract.

Tips & Warnings

• Hiring an attorney to develop a co-ownership contract may cost a few hundred dollars now, but that one-time expense could save you major headaches in the future.
• Avoid buying a vacation home with someone who does not share your goals for the property. Disputes over financial matters can damage relationships, even between partners who share emotional commitments.