ftb deposit/buying with friend

Annisele

Your thread reminds me of this one.

I also can't see what your friend gets out of the deal. What happens when your friend wants to buy a house of his own, but can't because he's already named on your mortgage?

As others have said, there's no guarantee that prices will go up.

muffinthemule1

Having bought a house with a friend nearly 4 years ago I would definitely advise against it! We have had nothing but problems, it's funny how when money is involved it can ruin a friendship. Also you have to think about the fact if things went wrong for him surly he could just move back in with you to his house? we thought house prices would go up, but now we are in nearly £30k negative equity with a house that is going to take years to get it's value back. We have a declaration of trust in place which our housemate seems to ignore. It is not s decision to make lightly and i know if i could go back 4years there is no way we would've bought with our no longer friend, is not worth the stress. Sorry to be all doom and gloom but just thought it best to offer some advice from someone currently living the nightmare of a joint mortgage with a friend.

surreybased

Hi,

Feels like a crazy plan for all the reasons mentioned - don't do it. Houseprices aren't increasing, you are tying yourselves together to a friend for the long term (25 years!!). Having an investment for your friend is totally different to you having a home (especially as you have a child). What happens when you have a fall out and he wants to come around to check his investment!!! He would be totally entitled to do - visit when he wants and even move in.
What happens when you want to paint the walls a colour he think will downvalue the house???
What if he meet a partner in the next few months and next year wants to get a mortgage with her? You would have to sell up as you couldn't afford the mortgage as a couple.

geoffky

House prices might not be rising for a very long time,,,they have been falling in japan for the last 20years,,could happen here,,the days of waiting for higher house prices to bail you out are over for a long time. KEEP SAVING and you will be rewarded

<sebb>

Others have pointed out the risks, and some of them might seem very unlikely to you, particularly if you are very good friends and you don't think he'll ever do the wrong thing by you.

But the most likely risk IMO is that he will meet someone and want to get a place of his own. This will probably happen within a few years, and if house prices haven't risen which is likely, and your income hasn't changed much, which is also likely then it's going to be very difficult for you to buy him out and you'll have to sell. This is potentially at a loss after fees etc.

The days of making huge profits on houses after a couple of years are gone - for now at least, and this is only ever going to be a short term arrangement.

hcb42

If you are able to pay half the mortgage and half the rent on your curent income, then I would assume you are well on your way to paying all the mortgage - just not the deposit. In which case save up another year or two , have your own deposit, the more the better, to get best interest rate and protect you from falling into negative equity. I know it's hard not to go along with schemes like this but you will be saving up a problem for all of you for later.