Has anyone bought a house with sibling

windmilllane

We built a 5 bed detached house 6 miles from a very busy tourist town 10 years ago. When my husbands mum got sick we moved in with her to care for her and stayed on in the house after her death. Our original house has been rented out, we have had some great tenants and some not so great and find we are constantly paying out for maintenance. The house is 13 miles from where we live now so it's a bit of a trek. We have decided to sell it and after paying balance of mortgage etc we hope to have €130k approx

My sister meanwhile has been talking about buying an investment property in the nearby town and has suggested we pool our resources as we could then buy a 3 bed house for about €250k. We would intend to do holiday lets as the town is very busy with tourists.

Just wondering if anyone has done anything similar and how it worked out.

pc7

I would avoid if possible if you can, there are too many future unknowns that can just cause so many issues. Few examples -
* one of you want to sell
* one of you want to live in it
* one can't afford payments

I've seen this work out two ways with friends who bought with siblings. One worked out wel in that the other wanted to move out and buy with new partner other was luckily able to remortgage and buy them out. The other is still a clusterfook as one has lost job, hadn't been paying payment protection, is now in areers and the bank are chasing other brother for full mortgage (which he can't afford).

If you do this get solid legal and tax advice, have tour solicitors write up an agreement which covers all imaginable eventualities (eg what happens if one of you dies who inherits? The other half), if one wants to sell etc.

How will you buy a family home if you use your money for his? What if it can't wash its face as a holiday let business? What are the tax implications etc.

Kings Inns or bust

As long as you treat it as not having been bought with a sibling you should be okay. Treat it as having been bought with someone you despise and distrust, then any better relationship is a bonus. Get the proper independant legal advice and don't both just go with Joe because he's cheap and you can both go in and get a pat on the head and the advice you want to hear.

Set it up properly, the money you spend now will soon be forgotten, whereas a feud breaking out - exasperated by money - will last for a very long time indeed.

Spanish Eyes

Will you continue to live in the late Mammy - in - law's house? Was it left to you and Husband by will or was husband the only child and Dad deceased? I'm sure it's legally ok to stay there, but you never know.

If it were me, I would not enter into a venture with anyone in my family. I love them to bits, but you never know what the future holds. Partners, husbands, wives, break ups, divorce boredom wanting to travel, realize the investment NOW, god the list is endless. And it can happen. Better to have a good night's sleep I say!

Stay well away, and buy a little place for yourselves and your own family to enjoy.

Best of luck.

Claw Hammer

Buying with someone else can result in trouble, on the other hand it can be rewarding. It is a business partnership and if things go wrong there can be bitter recrimination. If it is a holiday tourist letting there will be much more work because of the constant turnover and also more outlay on furnishings and redecoration. Some people are very stingy and will argue over €5 for a lampshade. Due to the contact with tourists personality issues can be huge. Some people are just not able to deal with the public and it can be a major source of rows if unfavourable reviews appear on the net because of an attitude problem.
Unless you have done something like it before with the other couple and know and trust them it is something to be avoided.

windmilllane

Thanks for all the replies. Will think long and hard about it and not make any rash decision