Some friends have been in your life since childhood, others came along in college, and a few may be co-workers or neighbors who’ve become like family. You trust them, share secrets with them, and maybe even travel together. But here’s a question you may not have asked yourself: Would you buy a house with them?
It may sound unconventional, but it’s not uncommon for friends to pool resources to buy a second home—whether as a vacation getaway or an investment property. On the surface, it makes sense: if you’ve promised to be “friends forever,” why not take on a 15- or 30-year mortgage together?
The truth is, even the strongest friendships can be tested when finances and property ownership come into play. That doesn’t mean you shouldn’t do it—but it does mean you need to be prepared. If you’re considering co-owning a home with a friend, here are three crucial conversations to have before you sign on the dotted line.
1. How Will You Split the Costs?
A mortgage isn’t like splitting the dinner check. Buying property comes with upfront expenses like the down payment and closing costs, plus ongoing costs like monthly mortgage payments, property taxes, insurance, and HOA fees.
And that’s not all—you’ll also need to plan for the unexpected: plumbing emergencies, roof repairs, appliance breakdowns, or routine maintenance. Having an honest conversation about who pays what and how you’ll handle big-ticket repairs will save you from major conflicts later.
2. What Happens if Someone Wants Out?
Life happens. Jobs change, financial situations shift, or one person may simply decide they no longer want to co-own a property. Before you buy, discuss the “what ifs.”
- If one of you can’t pay, will the other take over the mortgage?
- Will you agree to sell the property if one person wants out?
- Should you draft a legal exit strategy in writing before buying?
It might not be the most exciting conversation, but planning for worst-case scenarios ensures you won’t be scrambling if things take a turn.
3. How Will You Use the Property?
Once you’ve tackled the money talks, you can move on to the fun part: deciding how you’ll use your shared home.
- Vacation home? Will you alternate weekends, vacation together, or rent it out when neither of you is using it?
- Investment property? You’ll need a rental agreement, a plan for handling tenants, and a strategy for maintenance and marketing.
Clarity on usage prevents misunderstandings—and makes sure your property brings you both value and enjoyment.
Final Thoughts
Buying a second home with a friend can be rewarding, but it’s not a decision to make lightly. If you’re both willing to have open, honest conversations about finances, responsibilities, and expectations, co-ownership could strengthen not just your investment portfolio but your friendship too.
If you can confidently say yes to tackling these tough conversations, you may just be ready to take on the adventure of homeownership—together.
Contact Gulf Life Real Estate and start working with a professional who can help you navigate all aspects of the home buying process!
