If you’re looking to build a buy to let portfolio the costs can be very expensive, consider a joint venture by clubbing your money together. Two heads are better than one!
The Property Twins
When buying with an Investment partner make sure you are both on the same page, is this a long-term investment or will either of you be looking to sell soon? Try to set out your short and long-term goals for your business.
Make sure your investment partner has reliable funds before searching for properties and that you have both visited a mortgage broker together to see what funds you can raise.
Set out clear roles from the start with your investment partner before buying. Who will look after what area of the investment? What part of it will you each manage? There is no I in team!
Buying with a Friend
Before heading out on viewings write a checklist of must haves. It’s easy to get carried away and emotional, keep an eye on your checklist!
Make sure you get an AIP (agreement in principle) before heading out on viewings so you know exactly what you can afford and to avoid any disappointment. Estate agents will also want to see this before accepting any offers.
Be prepared to compromise, you will never like the same thing but pick out a couple of areas that are a priority to you I.e. location/size//garden etc and make it work for both of you.
Have you discussed what would happen if ether of you met a partner, how would this work in the future? Situations can change quickly so although it could save you money clubbing together and get you on the ladder quicker it could be a recipe for disaster so think carefully before jumping into this option.
Shared Ownership
If you can’t afford to buy a property outright, shared ownership will allow you to buy a share of a home and rent the rest. This is great if you are looking for a quicker way to get on the ladder however you will have to buy where the shared ownership properties are, which may not be your preferred location.
When considering a shared ownership scheme make sure you read the terms of the agreement carefully, there can be various extra fees and not all lenders will offer shared ownership mortgages so speak to a broker first.
Take a look at the management pack, you will need to pay the annual service charge for the leasehold, this could be in the region £1000 - £2000 per annum so you will need to factor this into your budget.
When it comes to selling your home the housing association that provided the scheme will usually have the right to try and sell your property first within a certain time frame. You can then put it on the open market if they can’t find a buyer, even then they will still want to check the criteria of your purchaser so bear in mind selling will probably take a little longer than usual.
Written by The Property Twins- Tonya and Rea French.
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