Buying a house is very expensive. Consequently, very few people can afford to be homeowners. However, community ownership or co-buying could be a credible alternative. In this video, 6 people leveraged the power of their community to buy their dream house in their dream city.
The concept definitely comes with some challenges but if done right with the right people, the advantages are enormous. Moreover, the option is probably one of the last chances many have left to be a homeowner.
Advantages of co-buying a property:
- Loan eligibility: One of the biggest advantages of co-owning a property is that it increases loan eligibility.
- Loan repayments: It is easier to repay the loan if there are two people or more paying off.
- Tax Benefits: In order to claim tax benefits all-owners must apply for a joint home loan to claim a deduction.
- Savings: The down payment is less
- Wider Choice of Homes: When you pool your cash with a friend or family member, you’ll find that your options for where you can live increase considerably.
- A good way to build wealth: If the operation is successful it would enable co-buyers to build up home equity and possibly expand the operation to other properties.
- Shared expenses: Monthly utility bills, annual taxes, and insurance payments, and maintenance costs among other bills are all shared.
- Fight loneliness: Socially provided you all get along well, you will always have someone to hang out with and provides support.
You want to live in a good and safe neighborhood. Trendy with social activities and positive vibes.
- The property will cost you a fortune
- Down payment
- Mortgage Fees
- Home maintenance fees
- Home remodeling and renovation to provide privacy to all. For example multiple exit doors and private bathrooms.
- Savings: a conservative approach
- Shared bills
- Home equity can soar because of the location of the property, thus providing some loan equity to all.
Total savings: 50%