Are you considering a vacation property purchase with friends? Here’s what you need to know. We know great agents in Whistler, the Sunshine Coast, the Interior, the Gulf Islands, Vancouver Island and other areas. Call us for a recommendation!
We recently had an inquiry about a vacation property purchase. We were able to give our client a great recommendation and match them to someone they will enjoy working with that will take excellent care of them.
We always recommend you use a local area expert. The expertise, knowledge and collegial relationships they have will pay off with a better negotiation process, lower price and no foreseeable surprises down the road.
As if the Vancouver market isn’t expensive enough! What about our resort communities!?! Many people opt to purchase with friends or relatives. It affords them a better more spacious home than they could buy on their own. But what should you look out for when you decide to go this route?
A few key items should be considered and you should definitely consult with a lawyer and accountant prior to starting your search and definitely before you write an offer.
You will need to decide if you want to register title as Tenants in Common (heirs) or Joint Tenants (right of survivorship). In the case of Tenants in Common, you could end up owning the property with someone you do not know. There are other forms of ownership but you should inquire which best suits your circumstances by consulting a lawyer and an accountant.
You will need to decide how you are going to pay for the property. Many people pull equity out of their primary residence to pay for a downpayment and then apply for a mortgage to pay the balance. Some people even pay cash. If you opt for a mortgage, all parties need to apply and get approved.
It’s a good idea to have an agreement drawn up that clearly states who and when gets to use the property, payment of expenses and an exit plan just in case things don’t work out.
Are you considering a vacation property purchase? Let’s chat! We are available and happy to help whether you are just curious or seriously considering a vacation property.