Purchasing property with friends is an increasingly popular way to achieve homeownership, create community, and share resources. By pooling funds and sharing financial responsibilities, it's possible to acquire a property that might be out of reach individually. This guide provides you with a step-by-step approach, covering everything from finding the right property to structuring your purchase and financing options.

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Why Buy Property with Friends?

• Shared Costs: Splitting the cost of a property makes homeownership more affordable.
• Community Living: Enjoy living with like-minded people who share your values.
• Financial Security: Real estate is a solid investment, with potential appreciation and stable housing costs.

Step 1: Finding the Right Property

When looking for a property to purchase with friends, consider the following:

• Size: Look for properties with at least 10,000 square feet so everyone has their own private space.
• Location: Choose a location that suits everyone's needs, whether it's close to work, nature, or other important amenities.
• Potential for Rental Income: Properties with guest houses, additional rooms, or basements that can be rented out will help offset costs.

For example, you could buy a $1M property with 10 friends. Each person would need to contribute $20,000 for the down payment, and the monthly mortgage payment could be as low as $500 per person—less than most people pay for rent.

Step 2: Understanding Group Purchases

Buying property as a group means the financial burden is shared. For instance, with a $1 million property and 10 friends, each person needs to come up with $100,000 for the down payment. This collective effort makes it significantly easier to afford a home.

Step 3: Creative Financing Options

Borrowing from Family or Friends

• Home Equity Loan: If your parents or a friend owns a home, they could take out a low-interest home equity loan (around 3%) and lend you the money. You agree to pay them back at a slightly higher rate (e.g., 5%), which benefits both parties.

Saving for a Down Payment