>I have £11’000
>my step brother has £9’000
>he says we should go 50/50 on a two bedroom flat costing £120’000
>we go halves on the mortgage everything
>i live in it, he stays in the army
>in 10-15 years we sell it and take our 50%
Is this a no brainer? Would i be retarded not to do this? We have the money and nothing to with it and neither of us are on the propertly ladder, am i retarded if i dont do this or am i jumping in here...
and what happens if the rent goes up? if immigration goes down, the old people all die in the next 10-20 years? will the apartment be as valuable in 10-15 years?
This. Where is the flat?
Rent? Do you mean interest rates on the mortgage? Also we are talking about a city where a 2 bedroom flat costs £120,000. I cannot see property going anywhere but up. A three bedroom semi detached here could cost you more than £400,000
A place called Winchester
Guys plox halp
It's possible for housing bubbles to pop, user. Real estate is not a super lucrative investment. In most cases, boomers use it to fight losses from inflation. Expect to not lose any money, but not gain any ethier.
In the UK?
sorry, i meant interest rate.
i am not saying it is a bad idea, just think it trough. How is your relationship with your brother? how does he act with money?
Are you a messy person, if so, how will that affect the value of the bedroom flat after living in it for 10-15 years.
in general i tend to keep business and family separated, as it can really strain relationships.
>Immigration goes down
fucking LOL, more like Europe becomes the middle east and the Euro ceases to exist as a currency. See what that does to london home prices
right wing parties are returning to power in most European countries, external borders are being enforced and immigration is going down at the moment. I'd say its a safe assumption that immigration can't continue like it has, and most people and governments realize this.
You need to figure out how much the property will cost you in total.
£120,000 + total amount of interest paid at current interest rate, bear in mind the figure you get won’t be accurate due to interest rate fluctuation. In ten years do you think you could sell the property for the figure you reached + profit? The answer is likely no, property investment is pointless unless you rent it out or Airbnb it
also, expanding on the old people dying point. Most European countries will have almost a quarter of their population or more die within the next 10-20 years. My guess is that this will flood the housing market, especially if immigration goes down.
Ye
>how does he act with money?
Tighter than a ducks butt. He HATES spending his money, but he seems 100% on putting his only savings (£8500) into this no hesitation.
OP look up north buy a terrace house ~£25K rent out at £300 - £400 pm, you'll get dossers and scrubs but put it in the hands of a property management company (fee 5% of rent) & accept no DSS benefiters
Did this years ago with 3 of my brothers £15k house, rent £350. Renovations should be undertaken by yourself
Don't put yourself into an expensive mortgage with the looming stagnate post Brexit economy. Cheap and cheerful.
Absolute worst time to be buying property if you intend to flip in a few years
ok, so lets say the house prices drop 50%. How will he act then?
Old people are dying, but big cities will continue to grow though, undoubtly.
Just don't buy property in a small town like Chester and you should be fine.
>brother in army will likely pay the full mortgage with the tip of his stack
>assuming OP doesn't go full degen he'll have a job too
>mortgage won't be that much with their assumed good credit history
>put apartment rent down so low it'll always be occupied
>Hold until GB reigns again
>sell for a loss, knowing you took a risk and it didn't pay off
Nice poster. Added the missing bits.
The question is can you pay for the flat yourself if your brother died/ flaked on you.
big cities will only continue to grow, if education, work and finance makes it hospitable. Education now a days isn't as big a economic incentive as it has been and will probably only get worse. If the interest rate goes up and stock market down the finance sector will take a huge hit and with factories and production being moved to Asia, i can imagine that city growth will slow down or ever decrease in the far future. other things to take into account is white flight, lower immigration and decline of birthrates all mostly taking place in the big cities.
Hi OP, estate agent in Knightsbridge here. Buy in Winchester. I would rather stick my money there than in central London. Better yet, buy a HMO and take one of the rooms yourself. Run the property through a limited company and you two will both be sitting on a nice stack after 10 years. I would do that if I had the money but id buy in the north. Better rental yeilds. Go for central.
Then sell, assuming no contractual agreement if i die you get savings pay off house, or victim compensation, or life insurance. If things go south OP's only out of pocket by £11,000. Its not that much & w/e he's paid off the mortgage.
OP turn the flat into a grow room and earn £25k+ pa. if your brother dies.
Life insurance. Also if he wants to flake we sell it and i get back my investment
forgot to mention bankruptcy, you'll need to go bankrupt if you sell. Not a big deal, you can easy get credit again.
where do you live that a house cost 120K ?
blackpool ?
Bad advice, don't do this, there be dragons up north. Best stay down there.
this girl is asian
involving $$ with relatives just don't
im also british.. bro just to warn you now is a fucking awful time to get on the property ladder. it is not a buyers market. its a market to extract money from suckers. there will be a correction within 10 years maybe 5. go then.
atm every fucker is buying to flip or rent. when the average person scrapes together money like you and your step brother are planning, and when there are hundreds of business promoting this idea, its NOT time to do it. its too late.
additionally, doing half each with your step brother sounds like a bad idea due to conflict of interest and different life paths later. unless you have certainly ironed that out. doing such in this market is even more silly.
invest it else where and wait for the inevitable correction.
however, if you plan to live in it, it changes things slightly.
Cool people always forget people and family can be shit heads. As long as dudes brother doesnt get a girl and try to fuck him out of the flat you are good to go.
makes sense if you rent it to other people so that your housing cost is actually 0 or even negative. Still not terrible otherwise.
I wanna fuck that chink ass on top of the world
>house
It’s a 2 bedroom flat
Buying a flat at ath while flat returns are declining
> Think it through user
> Wait till 2020
also
> 50% return on property ?
> This isn't 1980
shes hapa
Combining family & $ tends to be a bad idea OP
property management services usually take 20% of rent but they will take care of everything even tax deductions if you want a hands off experience.
heh, over here even the left wing parties are against immigration (not all but most of them are)
Getting a mortgage right before the housing market is about to crash in a year or two.
looks full asian to me
But we dont plan to sell in a year or two, we plan to sell in 10 or even 15+
>housing market
>crash
Literally impossible in today's age, there are too many decently employed people who desperately want a house for utility rather than just investment. The second it drops 10 or even 5 percent it will get a new wave of buyers putting it back up.
>you shouldn't invest in real estate because european immigration might go down
what the fuck am i reading
there's going to be 1 billion more africans in a generation (conservative estimate), and if you think making immigration illegal will stop them, you have lived a sheltered life
when it comes to risk profile, you should sooner consider authoritarian socialist state redistribution and/or civil war as possible events
Seems good. Some things to look out for:
* If the area is prone to flooding.
* What the ground rent is.
Bonus points if its 10 minutes from a train station that gets you into London.
Could be a nice purchase user. Just make sure you get something in writing to cover the case where one person wants to sell.
Same, I think that guy just confused "miserable cunt" for hapa. Which to be fair is an easy mistake to make
>Bonus points if its 10 minutes from a train station that gets you into London.
Winchester is THE area londoners now come to buy because they would rather live here and commute than afford to live in city.
hapas are great too, just pointing out the girl in OP is full asian
When your a buyer you care about short term ( 1 / 2 years) when you sell you care about long term, a 5 - 10% correction is what the market is begging for right now, buying has already slowed down despite the all time high
OP, get your agreement with your brother notarized.
In fact, you should both see for a lawyer to draft the agreement.
You should also include an option for the ability to buy out the other's stake.
Don't avoid doing this because "you trust your family", do it because it's potentially a lot of money, and money can make people really fucking stupid. Also this I'm not sure about Bongland's legal system, but I assume something like this should be possible as long as the lawyer isn't already representing one of you.
Good luck, and I hope it works for you.