Buying with a friend - good idea?

VJsmum

I don't know if anyone else has been in this position. We have paid the mortgage off on our own house and also own another that we let to students.

A friend has asked if we would like to go halves on another house with a view to doing it up to sell or let. We have just enough to buy half a house and it sounds like a reasonable idea (the friend has been a friend of my OH for 30 years and is reliable). Just wondered if anyone had advice?

hazyjo

Just the obvious ones, really:

- what if it's gone down in value when you come to sell?
- if you have to rent it out, who'll act as landlord? Or will you use agents?
- what if one needs to sell it further down the line?
- what if you don't agree on fixtures and fittings, decor, quality/type of materials, etc?
- timescale
- are you both able to commit to the same number of hours on the project?
- is it a 50/50 split?
- what if one of you dies or is injured (sorry, I'm a pessimist!)

Loads of other things... but that's off the top of my head.

Jx

Doozergirl

Have they found a house?

I think you need to be very realistic about the potential resales and cost of work. Be very careful. Just becuase a property needs work, it doesn't mean there is money to be made. Is your friend experienced in this?

It goes without saying that the property is put 50% each and that your friend isn't borrowing against the property, otherwise you are equally liable for any debt.

I think it would be far preferable to do it for resale. That way there is a definite plan from which you are able to escape from quickly and have no long term financial commitment to each other. I don't ever think that a long term commitment with friends is a good idea. Sometimes things happen that means it suits one to get out when in doesn't suit the other and for that simple reason I'd rather make the money and get out.