Rise high Investor Weekly Video #42 Is it a good idea to buy property with a friend

Should You Buy an Investment Property with a Friend?

The Upside

Enter the Market Sooner: Pooling resources can help you buy a property faster than saving alone.

The Challenges

1. Equity Access: Co-ownership makes accessing equity tricky since your friend must agree to any loan changes.
2. Borrowing Impact: Banks may count 100% of the debt against you but only 50% of the rental income, reducing your borrowing capacity.
3. Relationship Strain: Friendships can change, and disagreements over the property may arise.

Protect Yourself

• Discuss Goals: Align on plans and how to handle conflicts.
• Document Agreements: Clearly outline responsibilities and exit strategies.
• Seek Legal Advice: Treat it like a business deal and get a formal agreement.

A Simpler Path

Opt for a more affordable property you can buy on your own. This ensures full control and keeps your borrowing power intact.