A very close friend and i have been talking about buying a house together.
We both live and work full time in the same area and both thought if we saved 12,500 each, combined we'd have 25,000 (AUD) and would be enough for a deposit for a mortgage and buying a house, would plan to go into a 30yr mortgage with the bank so depending on the cost of the house we'd be paying ~$ 300 mortgage weekly, so along with us living in it and renting whatever spares rooms out we'd be able to live and pay the mortgage instead of renting off others. Does this sounds like a good idea / investment?
We live in a decent city in australia and think it sounds like a good investment. If either of us move or situation changes we can either rent the house out to others and possiblely get real estate agents involved to look after that aspect of it or we could sell the house (hopefully for more than we paid) and pay off the mortgage and hopefully would have made a bit of an profit after dealing with banks/solicitors and all that.
Any comments would be greatly appreciated
cheers
Answer by Val
I don't think it is a good idea to buy a house with anyone, unless you are married to them. And sometimes even that doesn't work out! You would be better off to buy it on your own.
A lot of friendships can't survive business partnerships.
Answer by Virgo
I think you need to try living with your roommate before making a decision on buying a house. Some of the best friends can make the WORST roommates. It's a long commitment, 30 YEARS, so I would check 1st by renting before buying.
Answer by Connie L
No, it's pretty much a bad idea all the way around. If you really want to buy, save up a little longer and do it yourself.
Answer by Twitter Bird
Sounds great right up until when your best buddy moves in their new girl or boyfriend that you can't stand. Or one of you gets married & divorced and the other parties ex suddenly has half ownership with you.
What happens if one of you loses your job, can the other cover the full mortgage and all expenses?
You actually need an ownership agreement drawn up by an attorney to do this correctly. You need to cover all the contingencies of how the ongoing maintenance/improvements are managed, how equity is shared in various circumstances (one party is unable to pay their share), what documents are required for these varied situations, etc, etc
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Orignal From: Is this a good plan to do? Buying a house.?
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