SMF - Just Installed!

Outside investment

Started by Badger, July 29, 2007, 06:35:40 PM

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Badger

Hi guys and gals.
Ok I have had a proposition today in that one of my tenants would like to buy into my house.  She is prepared to buy in at 1/8 of the property value, I have thought about it and if investment was for over 5yrs then I could see it being quite a good idea.  The investment would be calced on today's price and the investment would fluctuate with the property price.  It would have no interest in the rental side of our contract thus meaning no decrease in her rent.
What are your initial thoughts my little lovelies.


Badger

propertyfag

Badgey, don't do it!!!

What good will losing that 1/8 be to you? You will lose in the longrun!!!

Badger

I did think about it and the possible loss of 1/8, but what I would do is in fact use the investment to extend the property increasing the value to more than the 1/8 is worth anyhow.
Alternatively I could always use the 1/8 as deposit on another property. Hey these things are there to make us think eh !.


Badger

propertyfag

#3
I guess it's a personnal choice. I just don't like the idea of giving up a percentage of my freehold. What if there's a dispute between the other shareholder? What if you want to sell the property? A property with multiple owners maybe unappealling to buyers.

But that's just me. I'm extremely cynical when it comes to stuff like that. But you're right, you could use the money to buy another property.