Buying a house with friends

KG

Hi there

I am looking into buying a house with two friends and I was wondering if anyone had any tips / useful resources?

Please note - I am looking for technical tips rather than opinions on whether it's a good idea.

Ta

KPG

Simon11

Make sure you draw up a contract with your friends for what happens when one person wants to move out!

Also is it 1/3 paying for bills ect.

You'll likely to have different deposits on the house, how will this affect what people pay on the mortgage. Ie if 2 friends put in 20k and the other friend puts in 0k, this would put the first 2 people at a disadvantage compared to the other friend.

Errata

How will you split the equity ? What happens if the property is worth thousands less when someone wants out ?

getmore4less

Ok tips only

Get a rock solid exit plan that covers all eventualities.

Cover can't pay won't pay by one or more of you.

Understand what it means to be financialy linked directly to other people and the impact of them being financialy linked to others.

Make sure the split is equal and do it properly in this senario equal deposits/share of costs and equal shares of the mortgage then equal shares of any maintanence improvements, Anything else will cause problems sooner than you think.

Be prepared to lose money.

cashbackproblems

I would never do such a thing, think about the problems even couples have, friends today but enemies tomorrow (you get my drift!).

Also how will you also decide on decorations, furnishings, who will pay for this? What if when you want to sell the other 2 have no where to live?? etc

Dan_1976

My only advice would be dont do it you are mental if you do!

VIGILANT22

KG wrote: »

Hi there

I am looking into buying a house with two friends and I was wondering if anyone had any tips / useful resources?

Please note - I am looking for technical tips rather than opinions on whether it's a good idea.

Ta KPG

For the mere fact you have referred to "good idea" would suggest you have been told it is not...added to previous yr post...it is a risk assessment you should be doing.....

http://forums.moneysavingexpert.com/showthread.html?p=31299105&highlight=#post31299105

sammyjammy

Is it a good idea? No, don't do it. Some girls bought a house next door to me and it ended in disaster, one of the girls is the neighbour from hell so goodness knows what it would be like to live with her. She is now, unfortunately, the only one left.

KG

Thanks to all who have provided practical tips of what to think about.

Yes - we've already established that it would need to be an equal share of everything - deposits / bills / maintenance. The idea is that we will have a shared bank account and all pay money in each month to cover the mortgage / bills / any other expenses.

Thinking abotu an exit strategy now is a good idea too - thanks.

For the record - I asked to keep advice to the technicalities / practicalities because, whilst I am aware of the many potential difficulties, I prefer to discuss these with people who know my personal situation and my friends. I have no doubt there are countless horror stories out there as well as countless successful house shares. Since no-one has a crystal ball there is no way of telling which this will be, so I prefer to stick to the facts if that's ok.

Thanks

KPG

Errata

Stick to the facts is an excellent idea. One fact you may need to pay attention to is what happens if someone can't contribute to the joint account becausse they've become unemployed or have to go on long term sick ? Can the other 'sharers' cover the shortfall easily and without resentment? What happens if a second person loses their job and can't find another ?

muskoka

Can I make a suggestion. Why don't the three of you rent for 12 months to see how you go before you commit to a mortgage. This way, you can if and how you gel with each other. You don't know anyone until you've lived with them