Keep away from bad investors A good attorney can also protect you from bad investors since they are less likely to want to go through legal process if they don’t have your best interest in mind.

Not all loans can be secured on a shared equity basis. Check with your lender to see what they will allow before you try to make a deal. Your current or potential lender will be ultimate guide when it comes to your ability to get a shared equity mortgage. If your lender does allow this type of arrangement, they should be able to give you a quote for some other type of financing.

Not a good option if you are a control freak You should also remember that one of best advantages of owning a home is sense of independence that you get from controlling property.

If you are not willing to give up that independence perhaps you should consider getting money as a gift or a personal loan instead of bringing a third party into your housing arrangement. Once you enter shared equity mortgage contract it cannot be easily dissolved unless property is sold or one partner buys out another.

Also, beware of communities in transition. If a community is on decline, you can often find a lot of condo openings but you can end up losing big when you try to unload property later on. Do your own market research and don’t rely solely on your broker to figure out if rate of appreciation would be conducive to condo ownership in your area.

Also, watch out for oversupply. If developers get ahead of themselves and flood market with empty condo units, it can take a long time for you to recover your investment.

However, if you live in densely packed, affluent urban area like parts of New York City, Miami or Los Angeles, a condo can yield almost same rates of return as average single family home.

Do some research, get professional advice and weigh your long term goals carefully if you are thinking about purchasing a condo.