Buying a property with your boss

[rich85uk]

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

[rich85uk]

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...

[rich85uk]

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.

Rental income should be split 50:50 between the co-owners.

just had it pointed out to me that its his room in theory that would be rented out and therefor his income as he is not living there and i am, same as if i too rent my room out (for the same price) would be mine which seems like a valid point

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

[rich85uk]

Thanks for your input guys, and those worried about being to the point/harsh don't be

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