Buying house with sister

M

Missy

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Hello All
Just looking for some advice on an idea that came to me in the dozy zone just before I dropped off last night. Haven't a clue if this is feasible or not so I am putting it out there.
My sister is single and approaching 28, starting to feel a little (read very) anxious about getting her own place but is not in a position to do it at present by herself what with house prices.
My soon to be husband and I are both investing in the SSIA which will be winding up next spring and were looking around for an investment for the cash since we seem to be managing just fine without it.
I had a thought that we could go halves with my sister on a house that she could live in and rent the other rooms. If we were to put a fixed deadline on the agreement, say that in 5 years she either buy out our share or we sell the house. On my very simplistic level it seems to be a win, win solution.
What am I missing? Are there great big obvious reasons why this would not work, legally, from a tax perspective...... any input greatly appreciated!
Missy
 
i did this with my sister, i could not afford a place on my own, worked out great, we set the 5 year limit and then we can decide to sell or continue as a investment property or even buy another place together

we got a legal letter drawn up to safeguard both of us
 
Hi Gar123

Were you and your sister first time buyers? Do you both live in the house at present?
I bought a house two years ago with my boyfriend so I would not be using the proposed house as a residence, just investment.

Thanks a lot!
 
The other possible 'catch' is that the property may not rise in value over the period of the investment - past performance is no guarantee blah blah blah
 
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