Purchasing a vacation home has its many benefits. For one, you’ll have a beautiful house to stay in. But, in order to obtain this home, you’re going to need a significant amount of money. Many times people will split the costs of the vacation home with their friends in order for them to be able to afford it. While this sounds like a money-saver, it also has plenty of cons that can go as far as legal battles over the property itself.
When it comes to routine monthly payments, you’re going to have to consider that people could opt out of their contract with you as certain issues such as financial problems can arise. To minimize the risk of this happening, your group will have to discuss how long each person is going to be on board and maybe even put down a deposit in the case that they agree to contribute but end up leaving.
If you’re purchasing a vacation home with more than 4 people, you might end up having schedule conflicts. The more popular seasons might create some internal issues with each other. To stay on top of this, a designated and set schedule should be created to help minimize the risk of this happening.
If your group isn’t on the same page in regards to how the vacation home is being used, there could be some serious issues. Sure it’s easy to compromise on the mortgage payments, but you need to ask the group what exactly is the home going to be used for. Is it for income-generating purposes? Is it going to be used year-round by a certain individual? All these questions can be answered when you set a meeting with all of the individuals involved.