The economy is recovering and many Americans feel more stable in their jobs than they have in years past. If you are dreaming of owning a vacation home along the Shore and the costs are a little out of your reach, you may have decided to purchase a vacation home with friends to help cut costs. There is a lot to consider and know before you do.
Is it right for you?
Obviously, the benefit of purchasing a vacation home with a friend is the reduced investment costs. To make the most out of a co-ownership both parties need to agree on how often each will use the home and how many weeks out of the year they plan to rent it out for rental income. There will be fees that need to be split between both parties such as insurance, home repairs, utilities, and management fees.
To protect everyone involved in the case of any unforeseen events and to prevent putting stress on a friendship, hire an attorney who will help you set up an LLC and purchase the home through your new company. Get in writing a way out in the instance one owner would want to sell and have clearly in writing what the expectations are in all areas of the home. How will the utilities be split? How often will the home be rented out? How often can a homeowner use the home? What days can a homeowner use the home? Who will pay the HOA fees? There is a lot to consider and everything thing needs to be thought out.
Pick out a home
Good vacation homes move quickly in today’s market and it’s a good idea to know exactly what you are looking for as a group before you begin your home search. That way when the right home hits the market you are ready and can put together an offer in a timely manner. Work with a local real estate agent who is experienced with the market for second homes.
The last thing you want to have happen is for a friendship to be ruined over co-owning a vacation home. Protect your friendship by having ground rules and requirements in writing for everything before purchasing a second home.
If you feel that now is the right time to own a second home along the Shore, The Ferzoco Group is here to help you.
The Ferzoco Group are experts in real estate from Ocean City to Cape May. Real estate is one of the biggest investments of your life and The Ferzoco Group knows what it takes for you to take that leap of faith in real estate. We provide you with the tools, professional service, and resources it will take for you to live the dream. Contact us here, or give us a call directly at (609) 399-5454. We are here to help you with all your real estate needs.