Reviewing the Key Advantages of Co-Ownership


National home prices have appreciated by 19% during the last decade but wages haven’t escalated at the same rate. For those who already own a home and wonder “what kind of profit I’d make when I sell my house”, this level of property price rise is good. But first-time homebuyers could be thinking twice before investing their money to buy a new abode. You could always buy a home quickly and cost-effectively from a company like Cash Buyer New Jersey. If not, you may think of co-ownership where you buy a home with a friend. However, before jumping at the prospect of owning your first home, albeit with a friend as your co-owner, or wondering ‘how do we buy houses’, you’ll need to evaluate the process and its benefits to decide if it’s really feasible to proceed.

Co-ownership with a friend – how does it work?
Unlike married couples, co-ownership with a friend needs you and your friend to determine how both the parties involved plan to structure their ownership. This refers to how you two will take and hold the title as owners/buyers. Co-ownership with a friend can be structured as either joint tenancy or tenancy in common.


Joint tenancy
When you and your friend hold the title as joint tenants, both of you must all get ownership simultaneously via the same deed and must have an equal amount of interest in the home. This form of ownership structure consists of the Right of Survivorship. Thus, in case a co-owner dies, his/her share of ownership would automatically pass to his/her surviving co-owner. This means the deceased co-owner’s heirs won’t inherit an interest in that property.

Though a co-owner’s interest in the property can’t be passed down to his/her heirs, he/she can transfer such interest to another person. But in such a case, that person may not get into the joint tenancy. Rather, that person would enter a tenancy in common ownership with the remaining co-owner, thereby bringing the joint tenancy to an end.

When you have a joint tenancy with your friend, you can’t sell your home without his/her consent. This is beneficial if your friend prefers to sell and you don’t. But if it’s the reverse, you could be at a disadvantage.

Tenancy in common
This form of ownership structure lets both you and your friend possess an interest in the property. Though such ownership could be divided into fractions or equally between the friends, the property itself can’t be. Thus, neither you nor your friend can lay claim to any specific part of the property.

Tenancy in common allows you or your friend to transfer or sell the home to another individual at any time without needing to obtain the other party’s approval. If you plan to sell the home while your friend doesn’t, this ownership structure gives you a lot of flexibility. However, it also puts you at risk in case the situation is just the opposite where your friend decides to force a sale irrespective of your requirements. You should also note that if a co-owner dies, his/her interest in the property gets passed to his/her heirs. Thus, the heirs of the deceased co-owner will enjoy the same control over the property.

Key advantages of having your friend as your co-owner
• Better chances of getting a mortgage: Both of you can combine your income and debts to improve your debt-to-income (DTI) ratio. This would make it easier to get your mortgage approved (provided both of you have a respectable credit score) and even enjoy better terms like a lower rate of interest.
• Ownership is affordable: By splitting all costs like monthly mortgage payments, repairs, utility bills, etc. 50-50, you can make it a lot more affordable to own a home.

Additionally, you can enter the housing market sooner by combining your assets with that of your friend. So, are you ready for co-ownership with a friend?

Download our
FREE Market Guide
Now

  • This field is for validation purposes and should be left unchanged.

See Our Google Reviews

Estefania Castaneda
Estefania Castaneda
17:24 04 Sep 21
Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
Vichai Soysouvanh
Vichai Soysouvanh
14:17 03 Sep 21
Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business again.read more
Niki Keser
Niki Keser
17:46 06 Aug 21
I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or rent.read more
YASMINA VASQUEZ
YASMINA VASQUEZ
15:13 02 Aug 21
Ken and his team were professionals ,they promised and they delivered or anything
Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
Vishrut Patel
Vishrut Patel
23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
Chelsea Grant
Chelsea Grant
15:36 03 Jan 21
I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
Aaron Zachko
12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
Joseph Tricarico
Joseph Tricarico
19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
Next Reviews

Site Map
Privacy Policy

Click for the BBB Business Review of Cash Buyer New Jersey

BBB RATING: A+