Invest in Property with a Friend
Recent statistics have shown that not only are more people buying their first home with a friend, work colleague or family member but more and more people are investing in property by also using this method.
This is due to the fact that property prices in some parts of the country have risen to such an extent that a lot of would be investors simply don’t have the funds required to pay for deposits. Remember the majority of lenders want at least a 15% deposit on a buy to let or investment property.
This has meant that more would be investors and even existing developers are looking at joining forces with like minded people in order to further their portfolios.Investing jointly in a property and having more funds for investment gives the following benefits:-
- It means together you could afford to pay the deposit on bigger and potentially more lucrative property
- It allows you to borrow more on a mortgage
- It cover costs such as legal fees, searches and agents fees
- It gives you the spare funds for any unforeseen problems
- It can pay for renovation costs (if required)
- It allows for costs in relation to marketing the property as buy to let
This all adds up to allowing investors the ability to afford a much better investment property than investing on their own.
However, you should always take investing in property with a friend, work colleague or family member seriously and make sure that you get the right legal advice before you purchase the property.
