Big purchases can be a significant investment for any individual or group.

Whether you're purchasing a new real estate, a vehicle, a business, or another major item or even group buying several computers, it's important to consider a range of factors to ensure you make an informed decision. This is especially true in a group buying or group sharing setting, where multiple parties have a stake in the purchase.

Here are some considerations to keep in mind:

1. Shared goals:
   As with any collaboration, it's important that all parties have shared goals and objectives. This is especially true in a group buying setting, where everyone should agree on the desired outcome of the purchase. Make sure all parties have a clear understanding of what they're buying and why.

2. Ownership:
   Establishing clear ownership guidelines can help prevent misunderstandings, conflicts, and potential legal issues.
   More on Type of Ownership

3. Legal considerations:
   Consider consulting with a lawyer or formalizing the agreement in writing before entering into a time share agreement with friends. This will help ensure that all parties are protected legally and that the agreement is legally binding.
   More on Boilerplate Agreement

4. Deposit:
   When a group decides to buy a property that requires a deposit, it is advisable to request members to contribute to the down payment. Guidelines should be set upfront on the amount, collection, and consequences if a member backs out before closing.
   Typically, the deposit is securely held in escrow. If a member withdraws, the member's down payment is forfeited; in such instances, either the group's collective down payment is forfeited, or a new/existing member has the option to cover the shortfall.

5. Financing:
   Consider financing options, such as loans or payment plans. If the purchase will be financed, it's important that everyone in the group understands the terms and is comfortable with the repayment plan.
   Please be aware that typically, in a bank loan scenario, if one or more participants fail to meet their financial obligations in time, it can negatively impact the credit of all individuals listed on the loan.
   If you are considering financing options, it is advisable to use a loan calculator to estimate your monthly payments. Websites like Loan Payment Calculator provide tools that can help you calculate the approximate monthly payment based on the loan amount, interest rate, and repayment term.

6. Ongoing Cost:
   Considerations the ongoing costs of mortgage, property tax, maintenance, license fees, insurance, and an emergency fund. These costs can typically be divided among the co-owners based on their percentage of ownership. It may be beneficial to create a dedicated account to hold money for these ongoing expenses.

7. Contingency plans:
   Prepare contingency plans for any unexpected issues that may arise during or after the purchase. For example, if the item is damaged during delivery or does not meet expectations, determine how the group will handle the situation.

8. Communication:
   Open and honest communication is key to any successful group purchase. Regularly check in with all parties involved to ensure everyone is on the same page and that any concerns or questions are addressed.

9. Consider Exit Strategies:
   Consider exit strategies in case someone needs to sell their share of the property or wants to withdraw from the group. This may involve establishing a buyout option or selling the property and dividing the proceeds among the owners. Should the buyout of a departing members' share be based on the value of the property at the time of purchase or at the time of their departure?

In conclusion, making a big purchase in a group buying setting requires careful consideration of shared goals, budget, financing, logistics, legal considerations, contingency plans, and communication. By taking these factors into account and working together as a group, you can make informed decisions and ensure a successful purchase.