Owning land with family members is challenging and can create undue stress. I've outlined some key points to think about before purchasing a piece of land for the whole family.
1. The financial burden of maintenance, repairs, taxes, and insurance may exceed the family’s willingness and capabilities.
2. Changing family dynamics and divorce diversion – can a spouse (or former spouse) own a percentage?
3. Disagreements can arise in terms of purchase price and structuring of the sale (cash, charging interest, etc.)
4. Scheduling the use of the property between various family members.
5. Does one sibling’s desire to cash out force an outright sale of the property?
6. Some need the immediate financial benefit from selling a property in order to sustain other aspects of their lives.
7. Family members often disagree on the appropriate structure to allow liquidation.
8. Physical proximity to the property varies drastically from one family member to another.
9. The tax implications of the property transaction affects all associated family.
To learn more, visit us at SouthernLandAdvisors.com or give me at call at 678.723.8148.