Club together to buy your home in the sun

There are increasing numbers of people buying homes abroad together for a number of reasons. But is it always such a good idea?

The good
Buying together makes sense – it cuts both of your costs, you are more likely to buy a suitable property and it tends to feel as if it’s less risk. If the house is only to be used as a holiday home, it will tend to get more usage than if there was just the one owner; If the home is to be rented out, many people feel there will be a better chance of finding tenants if the property is bought jointly – many joint owners do not want to use agents and tend to put notices up in newspapers and on the internet; having more than one owner means the workload is spread-out.

The Bad
Friendships fail. When owners fall out, your paradise home could turn into a nightmare. No matter how strong your friendship now, it is important to get good, legal documents drawn up to protect all parties in the future. Some questions which you will need to cover are:

– What happens if you get a joint mortgage on the property and someone falls behind with the payments? How will the shortfall be covered and what happens if this ends up being a long-term problem?
– What happens if one owner runs up huge debts or is declared bankrupt?
– What if the place is left as a mess?
– Who do the goods in the house belong to?
– What happens in the future if one person wants to sell? Do the other people get first refusal?
– How will holidays work? What if two or more people want to stay in the house at the same time?

Buying a property together, whether abroad or at home, is an attractive proposition, but it is important to remember that the best of friendships can fail and in the future, different people may have different perspectives on what to do with the property. Therefore, it is imperative that if you do buy a property with another party that you get firm, legal documents drawn up to ensure that there is indisuptable clarity about all possible circumstances.

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  1. Alessandro | May 5, 2007 | Reply

    I have had friends who have gotten together to buy a terrific huge house in Merida, Yucatan, Mexico. The prices are just amazingly low, labour is cheap and it is a great place to have a vacation home. Most of the houses are really interesting colonial homes , many of which have been abandoned for years. The climate is perfect all year around and the Mexican economy is the strongest of all latin american economies. And Merida is the safest city in all of Mexico….very tranquil but also awarded the prize as Cultural Capital of the Americas in 2006…..so a great place to buy, at a very low investment for a wonderful house. Something to think about.
    Alessandro

  2. A | Jan 17, 2010 | Reply

    wow!! Now the price of the house is higher day by day!!!

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