Buying a house with 9 friends

[scotchnrocks]

I know four people who are doing this same thing right now. It seems to be working as they've lived there for a little over a year with not many problems. I just couldn't see it working because you need to stay for 5+ years to make it profitable, and even then any profit has to be split 8 ways. I wouldn't do it.

[Your Mom]

At 18, are you really going to mow the yard or water it or shovel snow or any of that [censored]?

[Banks2334]

Renting isn't necessarily throwing away money. The fact you don't this makes it much more likely this venture ends poorly for you and your financially uninformed friends.

[JuntMonkey]

Renting is not throwing money away. Buying comes with its own costs, including utility bills which may have been included in rent, maintenance costs (which are often significant), and perhaps most of all, property taxes.

As others have mentioned, you need to be sure you're all going to stay put for a few years, which is absurd for nine 18 year olds.

Do a quick Google search and read some articles about renting vs. buying - it's not as cut and dry as you think.

As stated in other posts, this is one of the most horrendous ideas I have ever heard, and you're considering it for all the wrong reasons.

[jbrent33]

I got my father to cosign on a loan, and bought a duplex my junoir year in college. Was on of the best investment's I could have made at the time. Rent on the other side payed the note and my roommates rent went in my pocket. I kept it rented for 2 years after I graduated and sold it for a nice profit, that in turn helped my purchase my first property to flip.

I think your idea is great, but maybe to try to find a place you could get on your own with one or two roomies.

[bav]

It's also probably against zoning regulations, codiciles, or HOA rules to put 10 unrelated people into a single home. I'm very positive that don't fly any of the last couple places I've owned a house. I think the rule was no more than 4 (mighta been 5) unrelated people could live in a single family home. And where I am now the HOA says residents are not permitted to park on the street--all the cars have to be in the garage or in the driveway; good luck getting 10 cars all put away.

What I have seen work very well in college towns is for mom+dad to buy a small house when the oldest kid starts to school. They put junior in the house and get rent from 3 roommates for a couple years. Then the next kid goes to college and the two kids live in the house with two roommates. A couple years later the youngest kid starts to college just as the oldest is leaving. Then 4 years later mom+dad sell the house for a tidy profit.

But there just ain't no way 10 people could possibly share ownership of a single home and make it work. Communes went outta style 30 years ago.

[JuntMonkey]

Also do you realize how big a house needs to be to fit 9-10 people comfortably (forgetting all other legal and practical considerations)? Where do you live that $500,000 would be enough?

[Miss Pink]

Well I guess the consensus here is overwhelmingly a dumb idea.

As for payments, I was thinking if anyone opts out before a pre-determined date(for example, 5 years) then all of their payments are treated as rent payments and they own nothing. That would settle a few of the financial weird things.

I suppose I underestimated the drawbacks, and they are clearly a much bigger deal than I thought.

[SossMan]

OP in 20 yrs.

[Nepthu]

Of course when you buy a house you get to 'throw money away' on property taxes, repairs, (and perhaps even interest and mortgage payments if the property value stagnates or goes down - and I think housing is on a downturn right now in most places). And you get to spend some time and money on upkeep like cutting the lawn. Just something to consider. Money spent on a house isn't all cream. But I think you may be on the right track. I would have to research it myself and think it through.