You want a house by the sea, a cottage in a ski resort or a shelter in the woods. But homes are quite expensive, and most of us do not have time to look for a second home, in addition to our main home? So here’s an idea: Divide financial obligations with a family member or friend! This article covers the most important to learn how to buy a house no vacation.
Partner looks great on paper, but buying a stay with family or friends can be risky. After all, if things are not going well, it may mean the end of their friendship. Besides that you can end up in a legal battle on the house. After all, you can either usually rent a vacation spot with friends or relatives. Or you could take turns with the house, so you really do not overlap.
However, this approach can also become a quick way to disaster if not carefully navigate the relationship and really learn how to buy a vacation home.
Do not panic! Before signing on the dotted line, here are some important questions to protect your finances and leave intact friendship or family ties.
TIC or LLC?
Property owned by 2 or more parties that are not married – friends, relatives (it makes no difference) can be set up as a limited liability company (SARL) or a joint tenancy (TIC). And while creating an LLC will involve hundreds of dollars in additional fees and a little more paperwork. A limited liability company can make it easier to give away or sell an interest in the holiday home and are treated as a person for tax purposes but with the added protection of a corporate shield responsibility. An operational agreement will be established to establish the rights and obligations of the members of the LLC.
Why is it important when you learn to buy a holiday home: under a joint tenancy, someone who has been injured in the shared holiday home can sue you and the other co-owners for all this is worth The penalty. Also, due to the fact that you own a home with someone else, you have less control over who can enter the house. So if your nephew wants to celebrate his high school diploma with a Blowout party at his vacation home, and someone walks on broken glass, you may come back to bite. This is much less of a risk if you choose an LLC.