Thought about your Valentine’s Day gift for your honey yet? How about a house?
Whether or not your honey is your spouse, your significant other or one or two of your best friends, buying a house in today’s market is not as crazy as it sounds. The Charlotte Business Journal’s Jenna Martin writes in January that the 2017 is predicted to have “robust growth” the Charlotte region’s new home market. And that the overall market “…will return to normalcy…,,” according to Metro Study. Metro Study also indicated that the year over year quarterly study of the Charlotte market is up 5.1%.
In Huntersville, for example, the median home price is $264.000 and the median rent price is $1,600. In Concord, the median home price is $170,000 and the median rent price is $1,289.
If a house sounds like a good idea to you (after you’ve calculated and compared the ownership costs/ tax benefits to rental costs) for a Valentine’s Day gift, here are some things to consider before you actually buy it.
First, you obviously need to like each other…a lot. We’re not talking about love here…we’re talking about like. Like means that you need to be comfortable talking about sharing the responsibilities of home ownership and about the amount of personal space everyone involved in this gift needs. Like means that everyone involved must be completely transparent about personal finances including credit card debt. Like means that you all have to respect each other’s personal tastes.
Everyone involved will be subject to a lender’s credit checks to determine interest rates on a home loan if you’re not paying cash. One person’s bad credit will likely be a problem. And everyone needs to understand how to split mortgage payments and when to pay them in order that all payments are received on time. Everyone also needs to have her/his own real estate lawyer so that all elements of home ownership are negotiated and solidified in a contract that everyone signs.
Even though everyone involved in this potential Valentine’s house likes and/or loves each other now, what happens when someone stops liking or loving or someone moves to a different location for a different job or honey or…? Again, everyone needs their own real estate lawyer to make sure each person is represented well and fairly if and/or when the Valentine’s house is sold or formally split into two units as condominiums or partially/fully rented.
The sharing economy is everywhere today…even in real estate so a Valentine’s Day house is not out of the question.