Should i buy in with partners parents???

I am currently thinking about buying a share of my partners parents home. This will be my first investment and i would plan to only live there for about 1-2 years. I am in a dilema because I don't have enough money for a deposit on my own place and this would give me an opportunity to get on the property ladder but do i want to be locked into something with my boyfriends family?. The house is in a great area 5km from the CBD but it does need a lot of work doing to it. I have no idea if this is going to be a good or a terrible decision - what if i want to sell down the track and they don't? I feel very under pressure to make this decision as his parents are divorcing and one of them wants to stay in the family home. I don't want to rent as it is money down the drain.

Please advise!

Hi there,
I'd like to say sounds good but there's alot of issues that can come up and interfear with happy families. I'd like to add more but you haven't said anything about how long you've been together how you get on with his family (whole family) as siblings can sometimes get their nose put out of joint when things like this happen. Anyway without more info I don't think people can really give you the answer your looking for.
CHEERS

Thanks for the feedback.

I have been with my partner for just over 3 years now and I get along with his family great. The house is worth about $600k and we would divide that by myself, my partner, his mum and his brother. So the lone would be $150,000 per person. His mum will be putting in about $100k of the deposit. I am 19 years old working in a full time sales position earning great money for my age. It is such a hard decision to make and I don't have any one who can give me unbiased advise.

Hi billybob

Thesituation you describe leaves you out voted, 3 to 1, every time, from a family, blood is thicker than water,point of view.

If I was to consider this investment, I would insist that an extensive Joint Venture agreement be written up by a good solicitor and would ensure that this JV Agreement has a mechanism to force the sale of the property at a fixed time in the future, if just require this sale.  And there are definitely other points that your solicitor will want to cover.  Expect to pay a significant fee to get a suitable JV Agreement written up and don't be surprised if your solicitor ultimately advises you against this investment.

Good luck.

Cheers,  Paul

Paul & Karen Dobson
Vendor Financiers
http://www.NoDepositProperty.com.au
Phone: (02) 4984 9540

Talk to us about Wrap Training Joint Ventures.

Hi, good on you for thinking ahead and wanting to do something positive with your cash.
So, 4 people all borrowing 150,000  but mum has 100,000 as a deposit?
A few questions?
Have you spoken to a mortgage broker/ bank?   Not sure how they view these arrangements.
Have you spoken to an accountant or solicitor? They will be able to guide you in the finer details.
Will you be able to claim the first home owners grant? It all helps.
You only want to live there for 1 to 2 years..then what. Do then sell your share? Are the other 3 people crystal clear that you want to move out in a couple of years?
Do you then wish to sell your share?
They probably would not agree to you renting out your room.
The cost would be approx  $1160  per month, plus insurance, rates.  (P&I) Can you afford this amount when you move out?
You mentioned the property requires a lot of work. Just how much? The sky is the limit there. How do you all agree on how much to spend on renovations?
If you did proceed, then all these things would have to be written up by a solicitor.

Sounds like a nightmare, far too complicated.
In my opinion, dont  do it. Stay with your boyfriend and be happy but invest in your name only.
Good luck.  :)

Thanks very much for your help.

The loans will be taken out seperately so 3 would be $150k and his mums who's putting in $100k deposit would only be $50k. I am estimating about $25k would have to be spent on renovations. It's a double edged sword.
Realistically I can't buy without them right now.

I definately think going to a solicitor is a must and it could work if a JV agreement was made up.

I would be strongly against it.

Even though you take out your own loans, as joint owners you are all responsible for all loans.  So if one defaults, then the others have to pay up or risk the house being repossessed, with the resulting damage to credit ratings.

You will not get the FHOG - boyfriend's mum already owns property.  And if you live there then you won't be eligible in the future.

Who decided the house was worth $600K? 
Marg

don't EVER get in a financial adventure with family.
And in this time of crashing houseprices, it's even worse.

Don't do it.

We had several real estate agents come over and value the house. 1 said it was worth $550k, 1 said $570k, 2 said $600k+ - i have spoken with them about the price of the property i think that $580 would probably be fair - they got quite offended. They have said if we pay $600k they will give us $5k cash to start on renovations.