Buying properties with othere people?

Why do you think a company is the best?

What are your reasons for doing this?

Is it a long term or short term partnership?

What are your investment strategies?

In many cases a Trust is the best vehicle – often a Hybrid Discretionary Trust. Often a Company can be the worst.

But you really should see an accountant and have him analyse your situation and make recommendations.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Hi Fox
Love your sayings..lol. But I would suggest that it is better to have four forks in one pie than no pie at all.

If cannot afford to do it alone and you set it up properly with provisions for people to get out of the deal in the future, then go for it. Even if it is disbanded in the future, you will still end up with more than what you started with if you do your due diligence and get a good deal in a good area.

Good Luck Wriggles

Julie Fisher
Daryl Fisher Homes.

Hi FITH
Someone has to have experienced the ‘hindenburg’ before others thought to check the exits and make sure they took a parachute! We are all here learning from the experience of others thus to avoid a mistake of hindenburg proportions! I bet all the people that witnessed that disaster told enough stories about it to ensure that it was never again a popular form of travel…can’t say I’ve ever travelled on one. You are a cracker! big lol

JF

Hi wriggles,

I couldn’t tell you whether or not investing with a group of friends is a good or bad idea, bit I can tell you if I were to consider doing something like that, I couldn’t find as many as four people I would want to do it with. When it comes to business, it’s so easy for things to go wrong and for friendships to turn sour because there’s obviously a lot more involved. My goal is to get into property investment, unfortunately I’m still in the early stages of researching etc. I know I can’t afford to do it by myself so when I finally do take the plunge, it will be with at most one other person (I trust no one!)

All the best to you though

The factor I see as critical to a successful partnership involving friends is TRUST, and I’m not talking about the kind you set up with an accountant or solicitor. I’m talking about the intangible kind that develops through sharing life experiences, supporting each other through good and bad, knowing you’re always there for each other, having similar dreams and aspirations, and knowing exactly what makes each other tick.

If you are going to go into partnership with your friends, make sure you have a clear understanding about the role each of you will play.

Have a solicitor draw up a deed which sets out the responsibilities etc of each of the partners. Do your potential partners have the sort of personalities which would allow them to keep their emotional ties with each other separate from their business dealings?

Communicate, communicate, communicate. Make sure that ALL information pertaining to the business is disseminated to all members of the partnership> Nothing engenders distrust quicker than lack of communication.

If there is any doubt in your mind……..don’t do it. My husband lost a 30 year friendship through a property deal about 4 years ago, and tho’ he doesn’t talk about it, I know that it has affected him deeply. It’s almost as if his friend has died – I guess in a way he did, as we will never see him again. We have also lost contact with the circle of friends that my husband and his mate were involved with, and my husband has lost interest in the activities that we used to do with his mate and partner, like scuba diving, caving, bushwalking and camping.

Please, give it very careful consideration. We may be recovering financially, but the emotional scars will never heal.

Good luck.

Novo.