Hello all,
My brother and I want to buy a place together to live in. 50/50 in both our names.
I was wondering how this will affect my PI plans. Will it be more difficult for me to get loans using my 50% equity in the prop to buy IP’s?
Also would appreciate any stories of success/failure when investing with family.
I get along very well with my brother BTW.Thanks, this is a fantastic forum!
Spidey. [}
]Go for it. But agree on some ground rules in case circumstances change.
Also you need to ascertain whether you are both entitled to the fhog and if so you need to set it up so you can gain the max advantage from it.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Hi spideyman
if you buy you need at full back plan if one has a change of mind about the house. who know you may meet a beautiful woman and suddenly sharing a house with brother for the next 5 yrs doesn’t look so appealing.
Also it may be difficult if you are planning to use some of the equity in your home to buy IP’s. if your brother’s name is also on the title. When you take out a loan like this with your brother the banks will ask you both to committ to 100% (in the event of one defaulting) of the loan so it will effect your servicability on future loans
some of these issues you may want to talk to a bank/broker about. i own an IP with my brother and it has worked very well, but i wouldn’t do it again.
regards westanG’day Spidey!
Personally i would advise against investing with family and friends. It’s not worth the risk, everything might be all peachy creamy now, but there are a million and one things that could go wrong and ruin your relationship. At the end of the day these people are the most important people in your life. Properties will come and go, families are for life. Watch a few episodes of Judge Judy, then make up your mind.
This might sound a bit pessimistic but I like to learn from other peoples mistakes as well as my own. Saves me time, money and stress.Work smarter, not harder!.
I had a bad experience investing with my brother. He actually lived in the house and whenever anything went wrong with the house, he expected me to pay for it because I organised the renovation. Anyway, long story.
We went through a bad patch for a couple of years, but thankfully now we have agreed to put it all behind us. I thought we would never speak again, that’s how bad it got.
I would be vary wary when investing with family. I have heard many times over, do not involve family or friends in financial matters.
Now I have learnt for myself, I will never do it again.
It may not happen to you, but be careful, some people act very differently when money is involved.
Good Luck.investing with family is a bad idea. i bought a property with my brother as well. now i can’t use the equity in it unless my brother is involved in the new project. so its basically useless. if one of you have owned a house in the past, the other can’t use his fhog for this joint venture. these are just some of the pitfalls i can think of.
Thanyou to all those who replied. My gut feeling was that it is a bad idea and you have helped me confirm it. I will stay away from it. Just have to decide what to do now.
Spidey. [}
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