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Nathan - Investment co-buyer - two properties ‘home & away’
I have co-bought two properties, both purely as investments - one in the UK and one abroad. I bought the UK property with 3 co-buyers, only 2 of whom I previously knew. And I bought the overseas property with 6 co-buyers, only 3 of whom I knew.
The idea of co-buying particularly appealed to me because as an investor it reduced the risk and overall cost of the investment but obviously I get to share all the rewards! Plus, even though my overseas property was bought as investment only, part of the co-buying package (which was agreed between all co-buying parties) included the opportunity to use the property as a summer and winter retreat, which was an added bonus for me!
With both properties, the overall buying process was very easy for me - luckily the properties had already been found and the other co-buyers were simply looking for further investment. So I came along at just the right time. It actually took very little effort from my part, but having said that it was great to have others on-board to discuss the legal paperwork with.
As an investor, the obvious advantages with co-buying are the reduction in capital required, the reduction in costs involved in all aspects of buying a property and as a result, the reduced risk. But, if there are many people in the co-buying group it can take a bit longer to make decisions about the property (everything from furnishings, to when it should be sold) - but so far there has been no real issues and I’ll definitely be doing it again!
If you’re thinking of co-buying as an investor, I’d strongly suggest that you;
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Make sure you meet the other potential co-buyers several times before you buy with them. You need to find people with similar mindsets who have the same goals for the property, such as setting the timeframe for selling the property.
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Bear in mind that if you are investing in property you need to ensure that you don’t need your money back in a hurry – because regardless of your initial plans for the property it may not sell as quickly as you hope.
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