Should we buy a vacation home with relatives?

[Mrwurm]

A vacation cottage on a lake that we frequent a couple times a year is up for sale. The following people are considering buying it and sharing it:

The wife and I
The wife's older sister and husband
The wife's younger sister and husband
My father-in-law and Mother-in-law

Can this work? Or are we asking for trouble?

 

[Robert_in_NY]

It all depends but most likely it will result in trouble. Of course things could work out if all parties involved are very easy going but it only takes one party to ruin the whole thing. I would be hesitant to get involved with that many people on this buy. Maybe if it was just the one sister and hubby then it has a better chance of working but 4 different groups would make it hard which you already knew. Good luck with your decision but I know what I would do in your shoes, whatever the wife tells you. /forums/images/graemlins/frown.gif

 

[mountain_man]

Can this work? Maybe

Are we asking for trouble? Probably

Suggest a carefully written agreement with all expected (and unanticipated) issues clearly defined. I think this is a situation where a lawyer is needed up-front, rather than after the fact. Here's a few to consider:

Maintenance, taxes and other costs, insurance, tax advantages, who uses it when-how much, cleaning, future sale, what happens when one party wants to sell (appraisal aspects), potential renting out to offset costs. Just because they're relatives, I'd still word it as if it was an arms-length transaction (maybe more so because they are relatives). Partnerships can work, it's the relatives that scare me...

 

[Richard]

Ditto what they said. where I live, there are 250 acres that are co-owned by 3 people in uneven percentages. They are all in 80's.

I'm expecting a nightmare when this passes to the next generation, as they have made and continue to make NO provisions for passing it on with any semblence of organization.

I for one, am not looking forward to the day when there are 12 owners (not counting spouses which, in Tennessee, I understand you need "permission" ie, signature, to sell..even if they are NOT beneficial owner)

My vote for you is buy yourself if possible, if not, partner up with as few people as possible & spell it all out. I'd also make it where they can ONLY sell back to "shareholders" so that you do not have anyone selling to another party and an "outsider" mixed in with you.

* I realize all have good intents, but one never knows

Richard (not been there yet, but inevitably heading there) /forums/images/graemlins/frown.gif

 

[pruntyc]

I don't think, I would do as the one said, "what ever the wife tells you". From my many years experience, dealing with people and family too. I'd run as fast as I could from it. It seems like at the time it would work and be a good deal. But I haven 't seen anything like that work, only for so long. Something always makes it turn sour. Not that anyone person means for it to go that way. But things change over time, and people change to, and I don't think it has any chance of working.

 

[cowboydoc]

I sure agree with Dick and everyone else. It never works out. We had a condo for awhile with my brother and mom up at a local ski resort back home. From day one my brothers wife griped and complained about everything. My mom and I just let it go but it really bothered my brother. He apologized more than once for her. He finally asked if Mom and I could just buy him out as he couldn't take her constant bad mouthing us. We did. He got divorced from her last year. Live and learn but never again. It only takes one bad apple to make it bad for everyone.

 

[Mrwurm]

Yep, it could get pretty complicated. Most of the cottages in the area are rented out during the summer on a weekly basis. The one we are interested in buying is usually booked all summer. As owners you can choose to participate in the professionally managed rental plan as you choose. But, if one of the partners chooses to 'block out' a certain week in June, do they owe the other partners for lost rental income?

I can see where this would become very complicated.

 

[mountain_man]

Why don't you and your wife just buy it outright and sell weekly rentals to everyone on TBN? /forums/images/graemlins/grin.gif

 

[Inspector507]

Jerry,
Yeah........it could work but I'd back out with that many couples involved.
One person may not like the quantity of adult beverages left in the fridge or the brand. Someone may DRINK all the beverages left behind.
Someone may not like the way the linens were left by the previous user.
Someone may decide that the cabin needs re-decorated without input of the others, or with input, no one agrees.
Couple A wants to use it on July 4th, but so does couple B.
All 4 couples use it on July 4th and complain that one couple is not doing their share.
Just too many things for 8 people to totally agree on. My wife and I disagree sometimes, but she always gets her way /forums/images/graemlins/laugh.gif ......usually. I can only imagine how 8 people are gonna keep any type of relationship as co-owners.

Jerry

 

[hazmat]

I've got it!

Have mom & dad in law buy it. The three daughters (& sons in law) can agree to rent it for X # of weeks for the next Y years. Garaunteed rental for the new owners. /forums/images/graemlins/laugh.gif

As others have mentioned, I'd stay away from the 8 way.