Has anyone here got anything good to day about buying a property with a sibling? I read a few of the past threads on this matter and most posters said to stay clear. It's an idea that's been in my head for a few weeks now and I need to either put it to bed or start taking it more seriously.
My wife and I already have our own place but were looking at going 50/50 on another property with her brother. Us (my wife and I) and my brother-in-law would make equal repayments on the mortgage. Her brother would live in it and we'd get the rent from a lodger in the second room. I've known him a long time and he's a man of integrity as far as money is concerned.
I'm not sure if this would work but can he collected the rent from the lodger under the rent-a-room scheme and keep it for himself? Meanwhile he pays us €3,000 gift (under tax free threshold) and fills our car with diesel a few times during the year. The property would be out in the country so wouldn't be a huge rent (or mortgage) so the €3000 would cover most of it. If that's not allowed, going down the regular rental income route would work too.
Assuming my brother in law will keep to his side of the contract, are there major pitfalls to this type of investment? For one, he'll have to come up with 20% for a second property down the line, losing the first time buyer advantage.
When it is time to sell, and any gains are split 50/50 between us, will he be CGT free on his portion?
Interested to hear your thoughts as if its a non-runner I can move on to my next project with a clear conscience!
My wife and I already have our own place but were looking at going 50/50 on another property with her brother. Us (my wife and I) and my brother-in-law would make equal repayments on the mortgage. Her brother would live in it and we'd get the rent from a lodger in the second room. I've known him a long time and he's a man of integrity as far as money is concerned.
I'm not sure if this would work but can he collected the rent from the lodger under the rent-a-room scheme and keep it for himself? Meanwhile he pays us €3,000 gift (under tax free threshold) and fills our car with diesel a few times during the year. The property would be out in the country so wouldn't be a huge rent (or mortgage) so the €3000 would cover most of it. If that's not allowed, going down the regular rental income route would work too.
Assuming my brother in law will keep to his side of the contract, are there major pitfalls to this type of investment? For one, he'll have to come up with 20% for a second property down the line, losing the first time buyer advantage.
When it is time to sell, and any gains are split 50/50 between us, will he be CGT free on his portion?
Interested to hear your thoughts as if its a non-runner I can move on to my next project with a clear conscience!