Co-ownership is kind of a horrible idea overall. What happens when one of the 4 people wants to use the property as collateral for a loan?
Not to mention that this promotes increase in property costs without fixing the issue. If the norm is to continue pooling money between individuals then real estate can continue to raise prices. Then you just need 6 friends 10 friends 14 friends etc. we need a market crash and we need corporate residential ownership to be heavily regulated.
wants to use the property as collateral for the loan
Nothing major honestly. If they default, they would lose their stake in the claim. Since they don’t own the entire house, the bank couldn’t foreclose but they could assume ownership of their portion of the loan. The bank would view it more like a financial instrument rather than a real property.
From experience, basically no banks take collateral on co-owned homes. You probably won’t run into problems like that specifically. You can also easily structure an agreement with a lawyer. In many states you have to have an attorney to buy a home anyway (CT, MA, GA, DE, KY, LA, MD, MI, NH, ND, OK, RI, VT, WV, WO). We used ours to write and tack on the equivalent of an HOA arrangement you’d see in a condominium for our shared rooms.
I do find it amusing we have redditors arguing landlords should be illegal and others arguing co-ownership is a bad idea. Yes, let’s build millions of single room houses for everyone who is single that span the entire continent.
Co-ownership is kind of a horrible idea overall. What happens when one of the 4 people wants to use the property as collateral for a loan?
Not to mention that this promotes increase in property costs without fixing the issue. If the norm is to continue pooling money between individuals then real estate can continue to raise prices. Then you just need 6 friends 10 friends 14 friends etc. we need a market crash and we need corporate residential ownership to be heavily regulated.
Nothing major honestly. If they default, they would lose their stake in the claim. Since they don’t own the entire house, the bank couldn’t foreclose but they could assume ownership of their portion of the loan. The bank would view it more like a financial instrument rather than a real property.
Millions of tiny houses isn’t the worst idea.
From experience, basically no banks take collateral on co-owned homes. You probably won’t run into problems like that specifically. You can also easily structure an agreement with a lawyer. In many states you have to have an attorney to buy a home anyway (CT, MA, GA, DE, KY, LA, MD, MI, NH, ND, OK, RI, VT, WV, WO). We used ours to write and tack on the equivalent of an HOA arrangement you’d see in a condominium for our shared rooms.
I do find it amusing we have redditors arguing landlords should be illegal and others arguing co-ownership is a bad idea. Yes, let’s build millions of single room houses for everyone who is single that span the entire continent.
More apartments, town houses and better residential and commercial integration communities would help a lot
Going full neet and building endless and countless single person dwellings and nothing else with no other changes is beyond stupid tho.