While people have always taken on joint real estate ventures, the idea of sharing the costs to purchase a property may seem especially attractive now in a time of uncertainty. We are not necessarily referring to when spouses by a house together, although that is also a joint real estate venture. We are talking about people buying real estate with a friend or family member. The rules are different when spouses buy property together.
A man wrote to The Moneyist column about the dilemma he was facing after buying property with his brother and then moving out of state while his brother remained in the house. While he provided documentation for the first time his brother refinanced the mortgage, he wants his brother to buy him out now that the brother wants to refinance again. The brothers disagree about how much the brother who wants to give up his share of ownership in the house should get.
As a younger person, the man who wrote the columnist couldn’t foresee that work would take him to another state or that his brother who stayed would want to refinance. The columnist discusses what he thinks would be a fair way to end the disagreement. But one of the most important things he wrote was “You both decided to invest $10,000 in this house rather than in the stock market…” Although your choices for what to do with your money are not limited to either the stock market or real estate, you do have to consider that putting a chunk of money into something is an investment. Some people do not think of buying a house as an investment, especially if they are going to live in it.
A Fee-Only financial planner can help you decide which type of investments are likely to fit in with your lifestyle and help you reap the most benefit.