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The pros and cons of investing in property with a friend

T

totallyproperty

Administrator
Staff member
As the cost of property around the world continues to increase we are seeing more and more people working with friends and family to build property portfolios. There are an array of pros and cons to this particular strategy which we will cover below.

Pros

Reducing your individual exposure
Two opinions can help
Working together can reduce the pressure
Two people can research more markets and opportunities than one
Using the contacts of each individual can often save money

Cons

Reducing your exposure also reduces your potential return
They say never mix business with pleasure - many have seen friendships ruined
You will not always agree
Your financial situations may be very different now and in the future
What do you do if one person wants to sell but the other does not?

There are many pros and cons with regards to investing with friends and family but as long as you go into the transaction with your eyes wide open, and you are both realistic, there is no reason why you should not be successful.
 
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