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peter_2008

Majority of millennials would take out a mortgage with two or more people to get a foot on the property ladder

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5 minutes ago, peter_2008 said:

https://www.bbc.co.uk/news/business-46895770

It will become the norm, just like 5 times x joint incomes, BoMAD and 40 years mortgages are becoming the norms.

Can't afford an entire house? How about half... or perhaps a quarter?

The continuous subdivision of UK housing stock into ever-smaller units = hpi forever.

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28 minutes ago, happyguy said:

My parents had mates who bought with a  friend to buy a home rather than rent many years ago this is not new

Maybe not totally brand new, but highly unusual in the past.  I do hope it's not the way of the future.

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I saw this on bbc news and came here straight away to post.  I know of 2 examples of this, its not a new idea, but it is a stinker of a rotten idea.  In each case I knew, it destroyed long term friendships when one of the young buccaneering co-owners fell in love/got a job elsewhere/fell out of love/wanted to go travelling/tired of the habits of the others etc. This is no shortcut to full ownership. 

A lovely bit of naive and green thinking from buccaneer Lucy, "We're all incredibly close, and if something were to happen that would mean one of us would become financially insolvent, I would want to support them. We're all in it together. I see us more as a family," she says.

That's a strained family feeling at the first support payment, a broken family feeling at the second, and a disowned family member at the third.  

 

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1 hour ago, Does Commute Abit said:

I saw this on bbc news and came here straight away to post.  I know of 2 examples of this, its not a new idea, but it is a stinker of a rotten idea.  In each case I knew, it destroyed long term friendships when one of the young buccaneering co-owners fell in love/got a job elsewhere/fell out of love/wanted to go travelling/tired of the habits of the others etc. This is no shortcut to full ownership.

Exactly. This seems fine to them at 32, but in 2-3 years when baby #1 arrives both couples will want their own space and the painful process of ending this arrangement will cause a lot of stress and kill the friendship. Might end up with lawyers involved. They haven't actually signed the deal yet so hopefully at least one of the four adults will come to their senses before exchange of contracts and put a stop to it.

You always get these 'buy with friends' articles at the top of the market.

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5 hours ago, Does Commute Abit said:

I saw this on bbc news and came here straight away to post.  I know of 2 examples of this, its not a new idea, but it is a stinker of a rotten idea.  In each case I knew, it destroyed long term friendships when one of the young buccaneering co-owners fell in love/got a job elsewhere/fell out of love/wanted to go travelling/tired of the habits of the others etc. This is no shortcut to full ownership. 

A lovely bit of naive and green thinking from buccaneer Lucy, "We're all incredibly close, and if something were to happen that would mean one of us would become financially insolvent, I would want to support them. We're all in it together. I see us more as a family," she says.

That's a strained family feeling at the first support payment, a broken family feeling at the second, and a disowned family member at the third.  

 

Her view is echoed by Lucy Jordan who believes buying property with friends, or co-buying, is "the answer".

Not only is it a wise choice financially, it is also the "best option", because "people are better off living in groups", she says.

"People are trying to decide how best to make the most of their lives," says Lucy, who currently lives in Harlesden, north London. For her this means buying a property in or near Dover, with her partner and four friends.

So ..... Lucy, who I presume works in London, is going to buy a house in Dover with 5 other people.

What could go wrong?

 

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2 hours ago, spyguy said:

And a website that does not entirely tally with what shes said

So...Lucy works for a company that promotes minimum £1,000 a month rent ("starting £245 per week") for a glorified bed-sit as a desirable "life style".

No wonder she thinks it is a great idea to buy a house with 5 others.

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Would avoid.......better to buy some land together with a group of people, invest in building own individual homes on it.......or buy a large property and split it into individual appartments own title, unconventional but possible. ;)

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8 hours ago, Does Commute Abit said:

I saw this on bbc news and came here straight away to post.  I know of 2 examples of this, its not a new idea, but it is a stinker of a rotten idea.  In each case I knew, it destroyed long term friendships when one of the young buccaneering co-owners fell in love/got a job elsewhere/fell out of love/wanted to go travelling/tired of the habits of the others etc. This is no shortcut to full ownership. 

A lovely bit of naive and green thinking from buccaneer Lucy, "We're all incredibly close, and if something were to happen that would mean one of us would become financially insolvent, I would want to support them. We're all in it together. I see us more as a family," she says.

That's a strained family feeling at the first support payment, a broken family feeling at the second, and a disowned family member at the third.  

 

LOL quite.

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Funny how the vile BBC decided to put this out now knowing prices in London are actually starting to tank. IMO it feels like desperation by them trying to imply HPI (particularly London HPI) is still going on, when we all know it's not. That's the tone I get from the article anyway:

"With house prices having risen over the last decade, many young people have found it tough to get on the property ladder."

But what about house prices in the last 6-12months huh Auntie Beeb?  It's like they've been saving this article for a rainy day? A last throw of the dice perhaps...after all four idiots trying to buying a quarter of a house each would certainly do HPI a world of good.

Edited by highcontrast

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I knew someone who did this back in 1989 just before the big housing crash. She bought with a friend outside London where her social life was at the time, but she worked in London and over the years she grew apart from her friend, met a guy in London and wanted out - but by that stage the property was in negative equity and neither could afford to buy the other out so it did become a bit of an albatross for a few years.

I also remember reading lots of stories in the papers around 2006 about how buying with a friend was the new big thing.

If ever there's a sign a crash is on the way its this story - always the last desperate roll of the dice after all other methods of stretching affordability have failed.

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This kind of story pops up every so often.  Easy way to lose friends if someone loses a job, causing everyone to have their house repossessed.

As mentioned before, the more frequent they are, the more likely things are unsustainable!

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The only potential sticking point I can think of to this otherwise pretty bullet proof business plan is what happens if you both can’t agree how much you’re going to just bang the rents up by?

 

im thinking some sort of sealed bids process where you each write your percentage down on a post it note - WITHOUT your business partner looking- then the rents just get banged up by the highest number? 

 

Seems like the fairest option for all concerned. Bonus being if you were to get any questions coming back from your scumbag tenants you can just tell em it was a board decision or some such.

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I remember four friends buying together around 2003/4, when house prices were rising fast, I think lots of people were doing it then.

I thought they eventually banned more than 2 people on a mortgage? or was it just a case that the banks pulled the group mortgages around 2008?

Why are they buying a SIX bedroom house between four of them, when they could probably buy a 3 bedroom house per couple for the same outlay?  or is it a slumlord 3bed house that's been split up to cram in as many bedrooms as possible, therefore a bit cheaper per room?

More attention seeking.

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On 05/03/2019 at 11:00, happyguy said:

My parents had mates who bought with a  friend to buy a home rather than rent many years ago this is not new

True. Back in the late 80s a couple of my mates jointly bought a house in Reading to get on 'the ladder'. It did cause problems when one of them wanted to get married and bail a few years later though (due to the HPC of the early 90s tanking the price).

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17 hours ago, highcontrast said:

Funny how the vile BBC decided to put this out now knowing prices in London are actually starting to tank. IMO it feels like desperation by them trying to imply HPI (particularly London HPI) is still going on, when we all know it's not. That's the tone I get from the article anyway:

"With house prices having risen over the last decade, many young people have found it tough to get on the property ladder."

But what about houndse prices in the last 6-12months huh Auntie Beeb?  It's like they've been saving this article for a rainy day? A last throw of the dice perhaps...after all four idiots trying to buying a quarter of a house each would certainly do HPI a world of good.

#vilebbc

It's like buy your own HMO! Without having to worry about things like licencising, fire alarms etc.. 

Edited by GreenDevil

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History repeats itself. Personally, I am betting on the return of 125% mortgage as the sure sign of a market that is about to crash (within 2 years ish).

We are getting there.

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Nah, it won't become the norm. Krusty and Phil were pushing this bollards 5+ (10?) years ago on their TV shows. I can't see it ever being more that a single digit percentage share of the home mortgage market.

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I think it's a great idea. Have 50 people owning it as their official residence.

Sleep in the garden in tents. 

Play loud music every weekend. 

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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