Buying a house with friends: Good or bad idea?

gary_the_great

After paying out another months rent myself and some friends had an idea of buying a house and paying the mortgage of between the 4 of us rather than just paying rent all the time.

We plan on going to a solicitors etc to get legal advice on what happens if one of us decides to leave or wants to sell etc but would like to know if this is generally a good idea?

We are thinking of using a company called sharetobuy.com who help you through the process. Anyone ever used them or have any comments?

Kez100

I would say no as there are just too many variables. How long before one wants to marry, take in a girlfriend, have children or lose their job? You may have an agreement on sale but what about plain changes in circumstances. If you ever end up in negative equity you will have to fund it to sell. What if one party just doesn't have enough?


No way would I do it with four people involved.

Doozergirl

It's so risky. Life with a husband is hard at times and we've made a proper commitment to each other!

Friendships are so volatile, even if you think they aren't; being thrown into a financial marriage with someone is totally different to having a friendship and will introduce different dynamics to the relationship.

You have serious responsibilities to each other which are affected when a partner enters the equation and you can't synchronise the markets to your love lives unfortunately.

Once you get to the point that you're ready to buy, you're also at a point where you are open to long term relationships. A house purchase is ultimately a life long commitment too and one that should be made alone or with someone that you can make a mortgage long commitment to .

EDIT: 4 people?! 2 is risky, 4 you must be out of your mind! Won't last five minutes! I guarantee a big fall out within a year! :eek:

tomstickland

I'd be wary. Even a one week holiday with a best mate can lead to trouble, so years of sharing a house could provide problems. What if one friend shacks up with partner, annoys you by living there for free, then moves out, leaves you with a financial problem. I'm not saying it's definite no, just spend a few nights running through all the possible bad things.

david29dpo

i live with a friend, have done for 12 years. in that time we have fell out more times than i can remember, but make up mainly because of the ties we have. 2 is bad enough, 4? no way.

Spangled

If you do go down this route, make sure you have a water-tight contract spelling out exactly what everyone can and can't do eg no live-in partners, no subletting of bedrooms, standards of cleanliness etc. And detail exactly how long the relationship is to last eg you sell after exactly three years - not one minute before - and you can only keep the house if all four agree to extend the arrangement.

A mate bought a flat with a friend of his - then they ended up falling out as my mate moved out, the friend moved his fiance in but she paid nothing to the mortgage. Bad scene.

But good luck!

PosterBoy77

I would echo all the comments made so far, but also add that renting is not such a bad idea. Not everyone has a full understanding of mortgages or the costs involved in buying a home. You mention that you would wather pay off a mortgage than rent. However these days actually paying off a mortgage can cost much more than rent. If you have some spare money, why not place it into an isa of your own and save money for a deposit when you can afford to buy on your own? If you and your friends were to get an interest only mortgage which over 1/3rd of people now get, you would not actually be paying any part of the mortgage off anyway.

nelly_2

Its the worst idea sinse hitler said


" right whats next...... anyone fancy Russia?"