loan of 60k to friend to buy apartment

[SirMille]

Point her in the direction of peer to peer lending, it might help her, and simply tell her you cannot afford to give a loan right now due to personal cirsumstances.

If you subsequently find out that she drifts away, no big loss eh.

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[dub_nerd]

...and if they can afford to write off the loan if it comes to that...

That's the crucial bit. Because at the end of the day you don't know how it's going to work out, either through unforeseen circumstance or because you didn't know the person as well as you thought you did.

 

[Bronte]

I have a friend that is looking for a loan of 60,000euro.
She is looking to buy an apartment in Carlow town as she is self employed and the bank won't give her a loan.she has about 18,000 euro in savings.
Her current rent at the moment is 550 per month.
She is looking to pay me back 500 per month over a 10 year period which would amount to 60,000 after 10 years.
The bank won't give her a loan as she is self employed and her annual salary is approximately 25,000 per annum
Any advise please would be great.
I presume we would have to go to a solicitor to get this in writing?

Even just reading the headline the phrase 'neither a borrow nor a lender be' springs immediately to mind.

If you go ahead, draw up a contract with a solicitor. And remember, this is a sure fire way of friendships going to pot. At a minimum she should be paying you something for this free money.

How much is the apartment? Can your friend not get a loan from the CU?

 

[Danny Boy]

Don't do it, 10 years is a long time & a lot of things can happen.

You'd be better off buying the apartment yourself & renting it back to her @€550 a month with a contract in place where she's doing something like a tenant purchase or rent to buy scheme so if she still wants the property in 5 years time you can apply the discount plus in 5 years she should have business accounts which may allow her to borrow on her own & buy you out.

 

[Maxed123]

Unfortunately I agree the the majority of replies. Don't do it. Number one she is self employed - what happens if she gets sick and can't work for a period of time. You don't currently know what her financial status is e.g. Bank statements, overdraft, credit cards, credit bureau report etc etc. There is a very valid reason the bank won't lend to her so I would really heed that too.
Also her salary is low and paying a mortgage and a monthly payment to you sounds like a lot of money.
Definitely recommend not lending this money.