Thinking of buying with a friend, 50-50. Opinions needed.

adonis10

geoffky wrote: »

I really hope you are not doing this for profit, you could be a old man before we see price rises that are worth talking about.
The economy will trundle along for the next god knows how many years and where are the factors for price rises coming from.. we are the new japan!!

The idea is to profit, yes. Why on earth else would I want to saddle myself with such responsibility, hassle and aggro?!

However, I intend to do much research before jumping into it, and some of the advice in this thread has been very helpful.

So, you do not think that the property market has bottomed out yet?

spadoosh

adonis10 wrote: »

The idea is to profit, yes. Why on earth else would I want to saddle myself with such responsibility, hassle and aggro?!

However, I intend to do much research before jumping into it, and some of the advice in this thread has been very helpful.

So, you do not think that the property market has bottomed out yet?[/QUOTE]

Morning again,

the answer to that bit is no one knows, some people think theres going to be a big crash in order to allow FTB on the market, some think theres going to be little growth over the next few years and other think were about to start seeing the housing market grow again.

One thing for sure is, there isnt enough houses in the uk being built so essentially it will not meet the growing demand over years to come. From an economists point of view increased demand and decreased supply leads to increased prices. So it suggests long term growth (as has always happened with property). Saying that it is a perculiar market and has a lot of government intervention so nothing is certain.

If you buy now and sell in 5 years, i personally think you would struggle to see a good enough return for the investment, too many risks at the moment. If you buy now and sell in 15/20 years (again i think) you will definately see profit and a fairly decent one at that.

spadoosh

geoffky wrote: »

I really hope you are not doing this for profit, you could be a old man before we see price rises that are worth talking about.
The economy will trundle along for the next god knows how many years and where are the factors for price rises coming from.. we are the new japan!!

Dont think we'll ever see the day where the government is handing out money to increase spending only for it to be put in saving accounts.

Yet to see negative inflation (or deflation whichever you prefer) dont think were that similar.

O and to be considered the 3rd largest economy in the world would never really be a bad thing surely?!?

poppysarah

adonis10 wrote: »

The idea is to profit, yes. Why on earth else would I want to saddle myself with such responsibility, hassle and aggro?!

Somewhere to live.
Sharing with a good friend you'd like to keep as a good friend, not fall out with after 2 hours of moving in.

If you're after a profit then don't buy with a friend.

adonis10

poppysarah wrote: »

Somewhere to live.
Sharing with a good friend you'd like to keep as a good friend, not fall out with after 2 hours of moving in.

If you're after a profit then don't buy with a friend.

Hmm, true but if it's just somewhere to live and to live with a friend, I can either rent or buy alone and let out a room to a friend.

If there is scope for a little more, ie. profit, then I would like to exploit it.

J_i_m

What there is scope for is a whole load of mistrust and aggro.

pmlindyloo

Tixy wrote: »

Because couples who live/own together generally share finances. So if one loses their income between them they'd try to cover their essential bills, not just on the house but debts etc.

If you have a joint mortgage then your are financially associated on your credit files.

That means if he (or you) loses your job and can't keep up repayments on your credit card, or car finance or any other non mortgage debt - then the other person is going to find their ability to get credit is massively impacted by the other person's messed up credit file.

Worse still of course it is the one who has lost their income can't even afford priority debts like the mortgage and utiltiy bills - and the other party finds himself having to pay up the whole lot - if they are in financial positiont to do so.

Personally and given what you've said about your situation - I'd consider buying on your own but perhaps getting a property with enough space that you could have a lodge to help with the mortgage cost in the short term.

Have just been trying to help someone who has done exactly the same as you are suggesting and has a joint mortgage with a friend.

She has now become very sick and is unable to work. She is only receiving SSP of £86 per week.

Because they have a joint mortgage the lender is refusing to allow a payment holiday/pay interest only for a while.

As she is only receiving £86 a week she is unable to meet her financial responsibilities.

I am not suggesting that you don't go ahead with your plans but at the very least get PPI (not a great fan but seems sensible in this scenario) and make sure you have savings to see you through any, God forbid, rough times.

adonis10

J_i_m wrote: »

What there is scope for is a whole load of mistrust and aggro.

Nothing is plain sailing. I don't expect to put down 30k, sell in 5 years and not have a single disagreement in that time. I can handle the occasional disagreement because this is where you talk things through and come to a mutually agreeable compromise. Whilst it's not a 'marriage' there is still a bit of give and take required.

adonis10

pmlindyloo wrote: »

Have just been trying to help someone who has done exactly the same as you are suggesting and has a joint mortgage with a friend.

She has now become very sick and is unable to work. She is only receiving SSP of £86 per week.

Because they have a joint mortgage the lender is refusing to allow a payment holiday/pay interest only for a while.

As she is only receiving £86 a week she is unable to meet her financial responsibilities.

I am not suggesting that you don't go ahead with your plans but at the very least get PPI (not a great fan but seems sensible in this scenario) and make sure you have savings to see you through any, God forbid, rough times.

Oh i can fully appreciate this, and fully sympathise with your situation, but if we always made a decision based on the worst case scenario then we would never do anything (never travel due for fear of being eaten by a snake, never buy a house for fear of losing our jobs, never talk to a new person for fear of not being like etc.).

I could just live at home for the rest of my life if I don't want to take a risk, but I don't!

J_i_m

But is taking a risk is what this is about? In your opening post you said that you could both put 30k into the deposit. So persuambly you already have 30k or thereabouts in savings?

You seem more interested in moving about and making a profit. If you go into shared ownership then any profit will also be shared and hence for the amount of commitment you'll have to put in your end profit if indeed you make a profit could look depressingly small.

So why not put you 30k into a deposit on which you'd be the sole owner? That way there's no potential for silly disagreements about what ratio you own... How much mortgage you pay.. You make all the decisions and if you make any profit.. It's all yours.