Thursday, May 25, 2006
More Bang for Your Buck: Partner Home
It is the down-side of living in South Florida. Home prices are through the roof. But in tonight's More Bang For Your Buck, we found a new way to become a home owner - even if you're short on cash.
WSVN--Take a look at Geoffrey Hux and Nancy Klein.
They're not married and they're not related.
But they do have a special relationship.
They plan to own a house together.
Nancy Klein: "I've been telling everybody I feel like i won the lottery.'
Geoffrey Hux: "I never thought there would be the possibility with me for home owning."
Geoff and nancy are part of a growing trend.
Adults who are pooling their resources to buy a home.
Terry Claus: "People are finding if they can join together in order to purchase something then they can accomplish that dream of home ownership."
Terry Claus from the home financing center says partnerhsips are becoming very common.
But you have to choose your co-owner carefully.
Terry Claus: "You got to remember you are buying something together and you are obligated to pay it back together."
That doesn't mean everything has to be 50-50.
You should set up a contract and decide how much each of you will pay.
You also need to decide if the home is sold, how will the equity be split.
Terry Claus: "If someone is contributing 75% and the other person 25%, you have to make sure that when the house is sold, the equity is split the same way.'
Plus make sure you and your partner have the same goal - both short term and long term.
Terry Claus: "If one person is only seeing themselves being there a year or two and the other person thinks they are going to live there the rest of their life then that needs to be discussed right up front."
But don't be discouraged if one buyer makes more than the other.
The score of the person with the largest income will have the most pull in determining the interest rate.
Terry Claus: "The other borrow is not going to effect your score persay."
Geoff and Nancy have their arrangement in order.
Now together, they're close to finding the right place at the right price.
Geoffrey Hux: "It's an icredible investment opportunity."
It's also imporant to plan your exit strategy and get it in writing. There are several legal documents set-up for your protection.
FOR MORE INFORMATION:
Home Financing Center
5200 Blue Lagoon Dr, Miami, FL