Many people purchase a home in Arizona as a group with family members or friends. Pulling funds together can help you buy the best possible property.

Sharing such a large responsibility with someone else can be a little scary but if you consider the following points in advance, the arrangement may be ideal:

Figure out your personal financial abilities and what you are comfortable spending first, before you even consult your friends and family. Always avoid “buying up”.

Think carefully about the people you wish to enter into this arrangement with. You must be 100% comfortable with their financial stability and their commitment to the property. Ideally you should know them very well.

After choosing the person that you would like to purchase your home in Arizona with, discuss your exact visions and goals for the property. How often will each member of the group be allowed to use the property? Will you each get specific weeks? It is usually best to rotate amongst the members of the group for major holidays. If you get the home for Christmas one year, another person gets it for the following Christmas. What kind of rules will you set? Are group members allowed to loan out the house to their friends and family if they are not able to use their allotted weeks?

Once you are on the same page about how you intend to use the home it is time to discuss the legal structures of ownership. This includes things such as how you will take title and how to split the cost of the home. It is advisable for each member to contribute enough to pay cash for the home. Don’t count on being able to finance a group purchase. This is extremely rare.

It is best to create a reserve fund for future carrying costs. One group from Alberta that worked with me to find a great Scottsdale home, each contributed enough into a reserve fund to carry all maintenance of the property for 5 years. They also made sure they purchased a Home Warranty to cover the cost of any repairs of the home.

Consider whether the group also wants to purchase a vehicle for the home. This is best done up front at the same time as the purchase of the home. You can’t count on other members to agree or have the money for this later.

It is very important to also discuss how you will handle ownership if someone needs out of the arrangement. What happens upon death or divorce of a member of the group? Will they be able to sell their share to a 3rd party? Make sure that you have planned for this situation and do not wait until after the issue arises to deal with it.

I would highly recommend a Property Concierge service for all group owners. Such a service will go into the home after each person leaves, make sure the home is cleaned and ready for the next person, oversee the landscaper and pool maintenance, check on the property regularly and maintain the home to your standards. Having a Property Concierge will eliminate the vast majority of problems or issues for group owned homes.

Do you have any specific questions about group purchases? I have helped several groups purchase in the Scottsdale area and would be happy to help answer any questions. Feel free to contact me, Carmen Brodeur, directly at 1-800-300-0263.

Internet site reference: http://www.thephoenixexperts.com/Blog/purchasing-arizona-real-estate-with-friends-and-family-2/