It can be hard getting onto the property ladder, especially on your own.
Sometimes joining forces with a partner or with friends is the best bet to get some property under your belt and afford the monthly mortgage payments.
Years ago the most friends used to share was that t-shirt that everyone liked and the swig of a wine bottle when out on the town but nowadays it is becoming increasingly popular, particularly as property prices increase, for friends to buy homes together.
There are many things to consider beforehand though, as this isn’t a simple CD that you can return back to the shop if you no longer like it.
Buying a house is a huge step and a big financial commitment so make sure you really know your friend and know that they are trustworthy and reliable. You have to like them fundamentally as you will be sharing a house together and living in the same four walls 24 hours day, seven days a week.
Having said this, there are many advantages to purchasing a house with friends. It cuts all the costs from legal fees, monthly payments, stamp duty and survey costs as well as the household bills. The financial burden of owning a home can be overwhelming so sharing that with others can be relieving.
And you don’t necessarily have to buy a house to live in it together, so you can always rent a room out to gain more income.
Make sure you set up the appropriate legal binding documents and agreements in advance. This means one person cannot back out of the deal a few months down the line and leave you in the dog house, or try to take more than they should out of the investment deal. A solicitor can help to draw up the documents and declaration of trust or a co-habitation agreement between all individuals involved.
You all may be pally right now but when times get tough claws can come out, so treat the whole ordeal like a bureaucratic process. Keep records of all payments and draw up a will for safekeeping. Remember, if one person defaults on payments everyone is liable.
So weigh out all your options and if you do decide to buy a property with a friend, use Robinsons International as your home and International Removals service.