I agree Don't mix family with money. can cause all sorts of headaches later
Buying house with sister, help
- Thread starter Bez
- Start date
Then walk away. You can save the money, and in time your properties will appreciate. You don't want all the strings that would be attached to this.
Though I assume your parents will say 'we'll give you this money if you'll look out for your sister'. I've seen too many family relationships negatively affected by money.
Alex
Though I assume your parents will say 'we'll give you this money if you'll look out for your sister'. I've seen too many family relationships negatively affected by money.
Alex
It has been said ad infinitum - "danger, danger,DANGER!"
Likelihood family members will be out of sync with each other? Almost 100%.
Buy out motivators:
One sibling wants to travel
The other to buy a property with a lifepartner.
Parents need a bit of cashflow for retirement/lifestyle/health.
Basically, asking to be bought out leaves the others pressured. Coerced to sell. Or may take risks to retain the investment property.
Investments dependent upon people giving you the green light means you are not independent....and investing is about financial freedom right?
Bez, it is not the same.
You will learn so much more doing it all on your own*.........Dollars and decisions.
* all on your own means without parents. Could be with a b/f or g/f
I must mention culture. Some cultures pool resources and finances and it works very well (interdependence, mutual benefits). However, being reliant on family and kneecapped from possible freedom (dependence) is what springs to mind for many of us by the look of the posts here who grew up in an individualistic society.
I find this an interesting thread.Have read it several times.
My opinion it is still a bad idea to invest with family.
However, maybe there is more to this.
These questions popped into my mind.They may have a bearing on the situation, or not.
How old are you and the sister?
Do you both have incomes and are they similar?
Who's idea was it to buy?
Will your parents still contribute without your sister living there?
Is this being considered your inheritance?
Are there other siblings?If so, what do they think, and have they been offered similar opportunities?
Sometimes parents, unknowingly,try to help out one child at the expense of other/s and cause tension. If you say NO to this opportunity, will it always be brought up and held against you?
My opinion it is still a bad idea to invest with family.
However, maybe there is more to this.
These questions popped into my mind.They may have a bearing on the situation, or not.
How old are you and the sister?
Do you both have incomes and are they similar?
Who's idea was it to buy?
Will your parents still contribute without your sister living there?
Is this being considered your inheritance?
Are there other siblings?If so, what do they think, and have they been offered similar opportunities?
Sometimes parents, unknowingly,try to help out one child at the expense of other/s and cause tension. If you say NO to this opportunity, will it always be brought up and held against you?
There's no way I'd do it. It's already coming with a condition that you have to use it together with your sister - not a good sign.
If you absolutely HAVE to do it, why not buy an IP together, and your sister can just rent another place? If the answer is that she'll pay no/less rent in yours, that rings another alarm bell!
Even buying an IP with a family member can be trouble, let alone buying a house that your sister will move into, and your parents have thrown in some money as well and feel they have a right of say too.
Very messy!
Good point Alex. Hothousing. But what if the nongrowing flower hampers the growth of the other.....*wilt*. Is that manure I smell? They say getting in the cacca makes one grow!
Could your parents buy the whole house, and both you and your sister pay nominal rent. This would allow both of you to put your own funds into something that will grow, shares, an investment IP or whatever, without making you responsible for each other's progress.
I still cannot fathom why your sister would be paying rent to live in a house that she has put up $75K towards purchasing. Wasn't the idea that your parents put in $100K and you EACH put in $75K. Would you both be paying rent to your parents? I am a bit confused.
Have I got it right. Would both you and your sister be borrowing $75K and be on the title deed as quarter share holders with your parents being half share holders?
Wylie
I still cannot fathom why your sister would be paying rent to live in a house that she has put up $75K towards purchasing. Wasn't the idea that your parents put in $100K and you EACH put in $75K. Would you both be paying rent to your parents? I am a bit confused.
Have I got it right. Would both you and your sister be borrowing $75K and be on the title deed as quarter share holders with your parents being half share holders?
Wylie
I realy appreciate the comments guys, and im leaning more towards not doing it than doing it..
Seems like a lot of hassel to make everyone happy..
To answer your questions Kathryn
How old are you and the sister?
Im 24 my sister is 26
Do you both have incomes and are they similar?
I have a pretty low income $34k, unsure what my sister earns, same or less i would assume.
Who's idea was it to buy?
My dads idea, to be honest my dad had no interest in property untill I did, and now he wants to buy everything..
Will your parents still contribute without your sister living there?
I think the hole reason my dad even mentioned the idea to me was beasue they wanted my sister to live in it..
Is this being considered your inheritance?
Yeah to some degree
Are there other siblings?
Nope
One thing that keeps playing over in my mind is that, on my low income the properties I look at are like $150,000 or less, which means that they are usualy not in good areas, and probly wont have a lot of growth..
So this might be my only way to get a house which has the potentual for good growth.
Seems like a lot of hassel to make everyone happy..
To answer your questions Kathryn
How old are you and the sister?
Im 24 my sister is 26
Do you both have incomes and are they similar?
I have a pretty low income $34k, unsure what my sister earns, same or less i would assume.
Who's idea was it to buy?
My dads idea, to be honest my dad had no interest in property untill I did, and now he wants to buy everything..
Will your parents still contribute without your sister living there?
I think the hole reason my dad even mentioned the idea to me was beasue they wanted my sister to live in it..
Is this being considered your inheritance?
Yeah to some degree
Are there other siblings?
Nope
One thing that keeps playing over in my mind is that, on my low income the properties I look at are like $150,000 or less, which means that they are usualy not in good areas, and probly wont have a lot of growth..
So this might be my only way to get a house which has the potentual for good growth.
Bez it is *a* way but not the only way. Perhaps the only way you know now but you will learn more and more as the months go by. Don't feel pressures.
Hard to anticipate every eventuality. Down the track partners could be in the mix and ask things like:
"doesn't living there on low rent entitle that person to a smaller cut?".....
"why can't we live in the freestanding home if we have kids and need the space?".....
.... it is a bit fraught.
Arrangements individuals make collectively shifts with partners in the mix.
Don't let dad's enthusiasm stray to haste.
Your right Wylie, she wouldnt pay rent..
Im not sure what my parents have in mind but i would think it would be in my name and my sisters as 50/50 and my parents just give us the money to put into it...
Totally agree with the statement of "not to mix money with family..."
But then, can't resist to think, what happen if the amount is not $50k, and is $50mil...does the statement still hold...
But then, can't resist to think, what happen if the amount is not $50k, and is $50mil...does the statement still hold...
But then, can't resist to think, what happen if the amount is not $50k, and is $50mil...does the statement still hold...
Why not ask Gina Rinehart and Rose Porteous?
I know its not exactly the same situation but the $ values are up there with what you were asking
A principle should hold true no matter what the numbers are.
But I am with you on the moral dilema - mmmmmm share $50M with troubled family relationships .........I suppose I could say "I'm off shopping and when I get back I'd better have a new house" - it could work for me
Aimy
Don't want to side track the thread, but remember - low cost proerty goes up in value too. It's worked well for me
but then again, I didn't have the situation your talking about with your sister living in it etc. (which influences more the house you buy). Anyway, I'm not advising you to go out and buy a low cost one by any means, but don't dismiss it.Hi there,
Here's my twopence for what it's worth: Speaking from experience, don't mix family and money, it caused alot of heartache and arguments within my family and we are very close! People under stress (financial, emotional or physical) can behave in a manner which you ordinarily wouldn't expect of them and they tend to do anything to save their own skin at the expense of all else.
It could end up permanently damaging a very important relationship between you and your sister, maybe not worth it....
Here's my twopence for what it's worth: Speaking from experience, don't mix family and money, it caused alot of heartache and arguments within my family and we are very close! People under stress (financial, emotional or physical) can behave in a manner which you ordinarily wouldn't expect of them and they tend to do anything to save their own skin at the expense of all else.
It could end up permanently damaging a very important relationship between you and your sister, maybe not worth it....
