Buying a house with 9 friends

[Miss Pink]

This just came up to me. Many people my age(18) rent apartments with roommates or rent houses with them. Common sense says renting is just throwing money away. So what about buying a fairly large house, lets say $500,000 with 9 friends?

Through a 10 year mortgage at 7% interest, the monthly payment is about $5800. $580 per person is very managable. It would enable me to not throw away the money renting, and be able to accrue wealth due to the cheap living quarters. Obviously it would suck to live with that many people, but with a large house it wouldn't be too bad.

In the end when its time for everyone to go their seperate ways, we'd probably end up losing some money on the sale due to interest, but is more than made up for by 1) being able to save in poorer years, 2) not throwing money to rend

Seems like the only drawbacks would be living with so many people/ and the conflicts that would arise w/ money and other issues.

Is this a good plan? Thoughts and ways to make it better?

[kerowo]

Get a good lawyer. Chances this ends well are slim.

[firstyearclay]

Usually you will need time 2-3 years vested to truly make a profit. At 18 years old so many things are going to change over the next 2-3 years (especially friendships) that I would advise not to do it. Depending on where you are moving to, you wont be able to get even a 4 bedroom house on that budget. The "idea" is a good one and you should definitely look into 1/4 to 1/3 the size/price of the house with 2,3 or 4 people if possible. This makes it more realistic and raises the possibilities of your idea sticking.

FYC

[suppasonic]

Not to mention what are you gonna do for the guys that stay for 2 years or 3 years. Do you divide up the profit depending on the number of payments they made? What about during the summer? And if you cant find enough people to pay the rent?

[edfurlong]

Buy a 200k house yourself, rent out extra rooms to cover payments. That is the only way something like this can work.

[Shadowrun]

its only a good plan if the other 8 people are your brothers and even than it will probably end bad.
you are clearly not thinking this through.

[kibble420]

[ QUOTE ]
Buy a 200k house yourself, rent out extra rooms to cover payments. That is the only way something like this can work.

[/ QUOTE ]

Yeah if you share ownership you only invite extra drama.

[soko]

Most likely the worst idea ever.

There is no feasible way you can divide a house 10 ways and also keep everybody happy. You need a house leader, AKA landlord that is the final ruling on major household decisions, taking a vote is not going to work between 10 people.

[lippy]

Terrible idea. Renting a house with 9 friends RARELY goes well...

[ElDuque]

[ QUOTE ]
Most likely the worst idea ever.



[/ QUOTE ]

Smartest thing I've read all thread.