Housing situation

[BriGy86]

I'm Planning on buying a house with my sister (I can trust her and she wont bring people home and destroy my stuff)

we were also thinking about getting a roommate (a friend or someone else we know)

I just had a few questions about the whole situation

-what would happen if one of us got sued or filed for bankruptcy?
-would it have to be classified as rental property if we did have a roommate?
-would the property depreciate in value because it is classified as rental property?

P.S. the mortgage would be in both my name and my sisters name

 

[akshatp]

LMAO @ I can trust here and she wont bring people home and destroy my stuff

 

[bctbct]

nothing, no,no

 

[KarenMarie]

if both names are on the property... then you are jointly responsible. the creditors will not overlook the house because someone else's name is on the deed. It would have to be signed over to the other party before filing bankruptcy.

I highly doubt having a roomate would classify it as rental property... but check with your state.

i do not think house value matter whether it is owner/occupant or rental.

 

[BriGy86]

Originally posted by: akshatp
LMAO @ I can trust here and she wont bring people home and destroy my stuff

lol, sorry typo, no i don't trust here just getting ideas

 

[Ronstang]

The only time you have a co-owner in property is when they are your parents co-signing to help you get started. NEVER buy a house with someone else. Someone needs to be in charge and you definitely don't want someone else putting your assets/credit at risk, even if it is your sister.

 

[erub]

What happens when one of you decides to have a regular boyfriend/girlfriend over? What if they and the sibling don't get along -- or even if they do, just another person basically living in the house for free? What about when one of yall gets married? When neither one of yall has the right to kick the other out, (obviously after a specified lease term, but indefinitely?) could get nasty..

 

[George P Burdell]

Originally posted by: BriGy86
I'm Planning on buying a house with my sister

Think it through.

 

[everman]

Not a good idea, especially if one of you wants to sell. If you do this, you should write up a buy-sell agreement, and a life insurance policy on the other person in the amount they owe.

It's generally not a good idea...

 

[Tiamat]

id get the parents to co-sign, not the sister... Seems like too many things could happen which would cause friction within the house.

 

[BriGy86]

Originally posted by: everman
Not a good idea, especially if one of you wants to sell. If you do this, you should write up a buy-sell agreement, and a life insurance policy on the other person in the amount they owe.

It's generally not a good idea...

that was another thing we were both thinking about, if the other person wants to sell, how we go about buying the other out or something like that, and we were planning on getting life insurgence policies on each other as well

as for one of us wanting to get married, both of us are very cynical about marriage and starting families, so i don't think that would be a big worry (I understand that things change but for right now those things seem highly unlikely)

and thanks for all the responses everyone