Listen Up: Millennial, Gen Y moving away from ownership

Posted Friday, January 29th, 2016. Filed Under My Daily Dose

In a recent Capital One study, it found that 46% of millennials would be open to buying a house with friends to share the cost.

Financially speaking this makes sense however there are some things to be aware of before doing so. Being financially prudent is important and will remove a certain amount of stress and to make a prudent decision one needs to know their facts.

In a National Post article, WHEN THE ONLY RING IS ON YOUR KEYS,Karin Mizgala highlights 5 questions to keep in mind when deciding to co-habitate either with a friend or partner (married or unmarried).

1. What sort of living situation do you want?

2. Who’s covering the down payment?

3. Have you thought of all the monthly, extra expenses?

4. Have you drafted a cohabitation agreement? (email agreements are not legally binding they must be drafted by a professional and signed by all parties in agreement).

5. Have you gotten professional legal help? (draft your cohabitation agreement).

When things go well and run smoothly that is wonderful. However what happens if your friend looses their job and cannot afford their portion. Even in a marriage you need to know where the money is going to come from to cover mortgage and living expenses.

Going in with eyes wind open, or as much as possible may even save your friendship and eliminate the possibility of legal action. When everything is laid out on paper the expectations are there and all parties know what they are signing up for.

I believe that today millennials approach this topic differently than their parents who were taught to get married, settle down and have children and work for the same person for years to come; the woman or primary caregiver may stay home to raise the kids while the breadwinner goes out and earns the ‘bacon’.

Today there is more equalization (we’re not totally there yet!) between what men and women earn, at least in Canada. The equation has changed and paradigms have been shifted; men and women view things much differently.

Being divorced I know if I bought a house with someone it would not be the same as the first time around. I only caution, from experience, that as long as you can keep the emotions out of it all is good. Look at the purchase of your home as a business transaction with definite parameters.

Good luck!

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