All Topics / Help Needed! / Investing with a friend

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  • Profile photo of runnymanrunnyman
    Participant
    @runnyman
    Join Date: 2012
    Post Count: 4
    November 5, 2019 - 3:07 pm

    Hi all,

    Wondered if anyone can help. I am planning on investing with a friend whereby I put up the initial deposit and they live in the property themselves and pay any associated loan and living costs. Are there any tax implications whatsoever for me? I would continue to live in the current property I own.

    As we would be 50% joint owners just wanted to make sure that there were no capital gains/rental income implications by entering into this arrangement.

    Thanks for your help!
    Pete

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416
    November 5, 2019 - 4:29 pm

    Hi Runnyman,
    One issue that caught me some years ago (going 50:50 with another person) had my Bank “deeming” that each of us was to receive HALF of any rent, and yet each one of us was “jointly and separately liable for the WHOLE loan amount”. Killed it when going for further finance….

    I suspect your situation may have at least that one problem area. Do check any intended moves with solicitor and/or accountant and/or financier BEFORE going ahead with anything. Too late once you are signed up.

    Benny

    Profile photo of SakoSako
    Participant
    @sako
    Join Date: 2019
    Post Count: 13
    November 5, 2019 - 9:08 pm

    Hi Runnyman,

    Whether it’s your friend/brother/sister/family/relative, do your due diligence and make sure you’re protected. Money and people don’t mix.

Viewing 3 posts - 1 through 3 (of 3 total)

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