Friends? How about buying together?

Making a dream come true

Buying a second home should be a pleasure above all else! By the sea, in the countryside or in the mountains, the satisfaction of a home away from home is synonymous with joy. You'll be able to spend quality time with friends, family or even retirees. It can also be a good opportunity to diversify your assets, and even generate new income by renting out the property you've bought when you're not there. So many possibilities!
The disadvantage: you always go on vacation to the same place. The advantage: this house or apartment becomes a rallying point for family and friends. There's also no more time wasted trying to book vacations on the Internet, only to find that unfortunately all the hotels are already fully booked at that time, or that there are no more flights... With the purchase of a second home, when the mood takes you: you go!

Available legal formulas

You've done it! You've agreed with your friends or brother on the property in question, its location and surroundings. You also need to decide on the terms of purchase.
With the creation of a société civile immobilière (SCI), the legal entity becomes the owner of the property, and the partners only of the shares. Under a SCI, the partners are liable for the company's debts in proportion to their capital contributions. For example, if there are 4 partners (you and your spouse and a couple of friends), each will own a quarter of the share capital and be liable for a quarter of the debts. However, setting up an SCI involves a number of legal formalities, such as drawing up the articles of association, registering the company in the Trade and Companies Register, etc. On the plus side, mortgages are easier to obtain. With several buyers, the bank inevitably has more financial guarantees.
If you don't do anything in particular by buying with several people, you'll be subject to the indivision regime. With this system, you'll own the property for the full amount of your investment. Each buyer, known as an indivisaire, owns the vacation home to the extent of his or her financial contribution, and therefore has rights over the entire property. This solution is the simplest and least costly to set up. What's more, the Civil Code is very clear: "no one can be forced to remain in joint ownership." If one of the co-owners wants to get out of indivision by selling his or her share, he or she can do so. The problem is that 2/3 of the undivided co-owners must agree to take decisions, such as carrying out work. To resell the property, unanimity is required, which can lead to deadlock!

In the event of death
With an SCI, the shares can be passed on to the heirs, as the articles of association set the rules as you wish.
With an undivided interest, the deceased's share goes to the heirs and not to the other buyers.

Expenses not to be overlooked

Before embarking on a purchase with friends and family, you need to anticipate the expenses associated with running the house. The main items to consider are property tax and council tax. Depending on the location, these can be quite substantial. And let's not forget water, electricity and internet, to be shared on a time-spent basis. No matter which formula you choose, the secret lies in a good understanding between co-buyers!

Stéphanie SWIKLINSKI