All Topics / Help Needed! / buying with a friend

Viewing 4 posts - 1 through 4 (of 4 total)
  • jake
    Participant
    @hossy1
    Join Date: 2014
    Post Count: 3
    July 31, 2014 - 6:51 pm

    Hi, loving the forum!

    I’m 21 and am looking to buy a investment property at the end of next year around brisbane with a friend and we are both from sydney. This will be our fist investment property and we will have about 70k each for a deposit and closing costs and extras…

    I just wanted to get some help from experienced investors if this will be a good idea, and anything we should look out for or have to consider.

    Thanks for your help in advance

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    July 31, 2014 - 7:00 pm

    Buyer beware. Generally this goes terribly wrong, as you’re both tied to the hip financially. What happens if one person wants to get sell but the other doesn’t, or if only one party wants to access equity for another purchase etc.

    What if one partner gets a nasty ex who tries to take half of their share?

    By both being on the loan, you are both liable for EACH portion and most lenders will look it that you receive 50% of the rent, but 100% of the debt – which in turn affects your serviceability moving forward.

    70k is a reasonable deposit, you’d both be able to make your own purchase individually and not have any of these potential risks.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396
    July 31, 2014 - 8:22 pm

    Hi Jake,
    I agree with Corey regarding the finance. I have one property with a 50/50 share with a friend. I’ve never had a problem so far but the most important thing is to both have the same goal regarding the property. Will you use equity in the future together to repurchase or sell etc you need to be in agreeance on the future of the property. Good luck :)

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    jake
    Participant
    @hossy1
    Join Date: 2014
    Post Count: 3
    August 1, 2014 - 8:24 pm

    Thanks for your replies a couple of things I didn’t think of.

    Is it possible for one party to use half of the equity? If so what are the implications of this?

    We both have very similar goals in investing and would be able to work out most of the issues mentioned. So if we do go ahead hopefully this will be a smart investment rather then a learning curve.

    Thanks again

Viewing 4 posts - 1 through 4 (of 4 total)

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