buying land, building house with sister, advice please

LegacyUser

hi, me and the sister are buying some land and building a house on it.

not really sure which bank, building society to go to.

EKRIUQ

Buy a copy of a good Sunday Newspaper and go to the Business section or the Indo on Thursday and you'll get the loan rate's and try ringing around.

RainyDay

Make sure you set up a formal agreement between to cover what happens when either of you wants to sell up on move on. There is a draft agreement on Askaboutmoney.com

Victor

Also see http://www.boards.ie/vbulletin/showthread.php?t=173124

ToxicPaddy

I bought a house last year with my sister as an investment.

We both sat down before hand and agreed that everything was 50/50 down
the line, with equal deposit payments, mortgage payments, fees were split
equally and everything to do with decorating it was split 50/50.

Once this was all sorted, we went to our solicitor and had an agreement
drawn up that said all of the above and of course what happens should one
or both of us meet our untimely demise.. (bit morbid I know but had to be
done)

Its a lot easier than you think once both of you are willing to sit down and
talk things out. Splitting costs is also a help as its easier to come up with the
money and manage repayments when you're still getting things sorted with it.

One thing I would suggest though is to make sure that you do this properly
from day one. Have all the paperwork drawn up before hand and signed in
front of the relevant people.

Have a joint bank account setup with complete access by both parties.
2 copies of bank statements sent out monthly to both your addresses.
Cheques having to be signed by both parties before being issues etc, again
it sounds a bit much but it will save a lot of hassle in the future.

Also check out things like first time buyer status. It maybe your first house
but is it your sisters? If not, she may not be able to get full mortgage as
when I enquired about the future and the possibility of me buying a second
house, I was informed that it would be classed as an investment unless I
stated it was my primary residence. If i didnt class it as this then I would
only be entitled to an 80% mortgage.

A for which bank to choose, go to all of em and building societies too, get
all their details, rates etc and sit down with your sister and someone who's
bought a house or even up to scratch on the process and then decide.

If one turns you down, just go to another.

Make sure all your loans, overdrafts, credit cards etc are up to date with
payments and something as small as that can go against you bigtime.

Plan ahead too, keep an eye on the markets for possible news of interest
rate rises. A quarter of a % may not sound like a lot but it could mean up to
€100 more a month in mortgage repayments.

Budget for things like life insurance, house insurance etc, these all have to be
paid monthly too and again, may add another €50 - €80 a month onto
repayments.

Most banks offer this service on top of a basic mortgage, get banks to
confirm the exact price you will be paying when all of this is included. Be
careful though as some will add unnecessary cover than you dont need in the
way of health or life cover. So read up on all of this before you sign on the
dotted line.

They always say that the first 12 months are the most difficult, this maybe a
little longer for you since you're building but it will be worth it in the end
believe me


Best of luck with it.

Tox