Buying a property with your boss
Discussion
Afternoon
A title says have been offered the chance to buy a place with my boss in about a years time, will have around 25k and hopefully he should too. this would be my first property but it will be im guessing his 3rd or 4th. im 27 and i would say he is around 50. This is purely an investment for him so in 5-10 years he will either want me to buy him out or it to be put on the market.
It all sounded good but while i would live there so would a tenant, which im pretty sure from memory he said he would want all the rent to cover his mortgage. Now it was a very brief and casual conversation and left as 'have a think about it and let me know' but thinking about it that seems abit unfair and would expect the rent to be split 50/50, or am i being unreasonable?
Also he will not be living there, so what else would be fair to split 50/50 and what would be fair for me to pay all of
just wanted peoples opinions on this before i discuss it with him again
A title says have been offered the chance to buy a place with my boss in about a years time, will have around 25k and hopefully he should too. this would be my first property but it will be im guessing his 3rd or 4th. im 27 and i would say he is around 50. This is purely an investment for him so in 5-10 years he will either want me to buy him out or it to be put on the market.
It all sounded good but while i would live there so would a tenant, which im pretty sure from memory he said he would want all the rent to cover his mortgage. Now it was a very brief and casual conversation and left as 'have a think about it and let me know' but thinking about it that seems abit unfair and would expect the rent to be split 50/50, or am i being unreasonable?
Also he will not be living there, so what else would be fair to split 50/50 and what would be fair for me to pay all of
just wanted peoples opinions on this before i discuss it with him again
Ask again in a year. 
Personally I wouldn't do it. He's your 'boss' and your relationship with him may be subject to change. He has a sort of hold over you by virtue of being your employer and that could put you in an invidious position.
He could install his mistress. Other employees. He could decide to sell against your wishes..... All sorts of nausea.
Trust is good. Control is better.
Personally I wouldn't do it. He's your 'boss' and your relationship with him may be subject to change. He has a sort of hold over you by virtue of being your employer and that could put you in an invidious position.
He could install his mistress. Other employees. He could decide to sell against your wishes..... All sorts of nausea.
Trust is good. Control is better.
thanks for your quick input guys, i should also point out it seems like he will do this with or without me me has just given me the option as im a first time buyer having to save up for my deposit
and while it is risky, we also get on pretty well and dare i say it the ideal person to buy with (very clued up on these things, good at DIY and probably has contacts that are plumbers etc)
this is the only chance i will get to buy a 2/3 bed house, if i go solo its a 2 bed flat if im lucky. which was an idea i got used to and dont mind but i need to consider where i will be in 5/10 years time if i go in with him on a house or alone with a flat
hmm decisions...
and while it is risky, we also get on pretty well and dare i say it the ideal person to buy with (very clued up on these things, good at DIY and probably has contacts that are plumbers etc)
this is the only chance i will get to buy a 2/3 bed house, if i go solo its a 2 bed flat if im lucky. which was an idea i got used to and dont mind but i need to consider where i will be in 5/10 years time if i go in with him on a house or alone with a flat
hmm decisions...
Neil - YVM said:
If you both put in half the money, then let it out, you would expect to split the profit equally.
But if you are living there, then you are also getting that value, so to then split the tenants rent equally would be unfair to your boss.
If he's paying a proper rent, then he is a paying the commercial rate for that 'value'. His part-owner status is an entirely separate issue.But if you are living there, then you are also getting that value, so to then split the tenants rent equally would be unfair to your boss.
Rental income should be split 50:50 between the co-owners.
DocJock said:
Neil - YVM said:
If you both put in half the money, then let it out, you would expect to split the profit equally.
But if you are living there, then you are also getting that value, so to then split the tenants rent equally would be unfair to your boss.
If he's paying a proper rent, then he is a paying the commercial rate for that 'value'. His part-owner status is an entirely separate issue.But if you are living there, then you are also getting that value, so to then split the tenants rent equally would be unfair to your boss.
Rental income should be split 50:50 between the co-owners.
but then where would we stand on bills etc, is it fair to say split them with the rental price of the room taking this into account? so he gets all the rent but we split the bills based on the room rented out including bills
That's not so much a tenant as a housemate; assuming you would be responsible for 50% of the mortgage repayment, your boss getting all of the tenant's rent is a bit off unless the rental value of half of a shared house is equal to(or greater than) half the mortgage repayment.
To keep it equitable you and the tenant should pay rent into a common account, then split that 50/50 with your boss after the mortgage payment has been deducted.
TBH it sounds like a potential nightmare.
To keep it equitable you and the tenant should pay rent into a common account, then split that 50/50 with your boss after the mortgage payment has been deducted.
TBH it sounds like a potential nightmare.
hidetheelephants said:
That's not so much a tenant as a housemate; assuming you would be responsible for 50% of the mortgage repayment, your boss getting all of the tenant's rent is a bit off unless the rental value of half of a shared house is equal to(or greater than) half the mortgage repayment.
To keep it equitable you and the tenant should pay rent into a common account, then split that 50/50 with your boss after the mortgage payment has been deducted.
TBH it sounds like a potential nightmare.
+1 - if you go with it - you WILL fall out with your boss eventually - avoid like the plague I'd say.To keep it equitable you and the tenant should pay rent into a common account, then split that 50/50 with your boss after the mortgage payment has been deducted.
TBH it sounds like a potential nightmare.
Nothing, and I mean nothing, has the potential to ruin friendships or relationships more than a property deal.
If you can't afford what you want right now, then without meaning to sound harsh so don't be offended, tough. Carry on saving & if it takes a couple more years to get what you want then do that. What would happen if in 6 months time your boss decided to sell up?
Honestly, please listen to the posts saying don't do it.
If you can't afford what you want right now, then without meaning to sound harsh so don't be offended, tough. Carry on saving & if it takes a couple more years to get what you want then do that. What would happen if in 6 months time your boss decided to sell up?
Honestly, please listen to the posts saying don't do it.
That's not how my brother worked it out with his son. They bought a £140k flat between them, Bro put in £40k cash and they both took out a joint mortgage for the other hundred. Repayments on the mortgage are split 60% nephew, 40% Bro. Then they established a fair rent, well 25% below market rate and nephew pays Bro half that. Lekky, gas and water bills are paid by nephew, council tax and any maintenance costs 50/50. They both seem happy with the deal.
ColinM50 said:
That's not how my brother worked it out with his son. They bought a £140k flat between them, Bro put in £40k cash and they both took out a joint mortgage for the other hundred. Repayments on the mortgage are split 60% nephew, 40% Bro. Then they established a fair rent, well 25% below market rate and nephew pays Bro half that. Lekky, gas and water bills are paid by nephew, council tax and any maintenance costs 50/50. They both seem happy with the deal.
So your brother is funding £40k cash plus £40k mortgage whereas his lad is only funding £60k total, son also gets below normal rent to pay and half his council tax paid. Nothing wrong with this where a dad is helping out his son but not likely that both parties would be happy with such a deal if they are in the OPs situation.ETA, I agree with all the posters saying don't do it!
Thanks for your input guys, and those worried about being to the point/harsh don't be
i could borrow around 140k ish max, so where im looking the nicer,larger 2 bed flats/maisonettes(650-750 sqft), an ok 2 bed house in an ok area that needs a fair bit of work or a recently updated house in a bad area
steveo3002 said:
if you might have 25k to put in then see what that can be used as a deposit on your own
i could borrow around 140k ish max, so where im looking the nicer,larger 2 bed flats/maisonettes(650-750 sqft), an ok 2 bed house in an ok area that needs a fair bit of work or a recently updated house in a bad area
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