No good reasons against Co-Buying Real Estate?

[PonderWisely]

Hello everyone,

I've been looking for a property to invest in for years, but with my income and the high prices in the housing market, it's just never enough.

A friend of mine was in the same situation, but he was lucky enough to have a cousin who also wanted to buy an apartment. So they bought one together and are now renting it out. Because they bought it together, they’re getting a better-than-average interest rate, and neither is too heavily financially burdened because they split the cost evenly.

I don’t really see downsides to that, why aren’t such insider tips floated around here, or why doesn't anyone here want to co-buy?

I know a few people who have done this, particularly student/early 20s age groups. I also know of other families who have bought bigger properties to have elderly relatives at home. I’d say it’s more common than you think.

One of them may want/need to sell for any reason. One may fall into ill health. The tenant may stop paying for a year, then wreck the place on the way out. Any profit is halved.

I don't understand. You hadn't thought about buying a property with someone else else? Why are you blaming us for not telling you?! Of course there are downsides to buying with someone else. There might be disagreements about work needed on the property. One of you might not be able to afford repairs. Your friendship might end. One of you might want to sell but the other one doesn't. The return has to be split so might not seem worth it.

Are you US based?

How is this an insider tip? Blimey.

People have been buying together for years 4 of my friends bought a 5 bed house in Bow together in the late 90s. Gradually it was done up and then people were bought out. One of them now owns the beautiful house outright.
But you have to be good friends and have the same out look.

As PP says, it's not really an insider tip, it's just one way to buy a house that most people would consider without prompting but often don't have the other person in their lives at the right stage to make it viable. People buy with family, friends, through businesses, whatever makes best sense for their situations. But there are reasons not to, as family/friend relationships aren't always smooth.

@PonderWisely "So they bought one together and are now renting it out"

So you're talking about what in UK we call a buy-to-let, bought as an investment property by two people.