It is important to be realistic about renovation and maintenance. Anyone who is looking to buy a property for a relatively short space of time, say two or three years, should be wary of taking on somewhere that needs work.
A new flat or a well maintained period home will hold its value better if prices do weaken, and will be quicker to sell. You might be a dab hand at DIY, but do your flatmates really have the stomach for the disruption and cost?
In the same vein, think carefully about the area. An up and coming area might not realise its full potential in a short period of time. It might be better to play safe, and buy in an area that is already popular, or on the edge of one. 'If you buy in a good area today, the chances are it will be a good area tomorrow,' says Mr McClelland. Buying in a good quality new development is also a safe option, as developers invest heavily to make sure they pick the right sites for their projects.
Allow plenty of time to sort out finances and to organise the legal paperwork. Shop around for a mortgage deal, as not all lenders will give loans if more than two people are sharing. However, there are plenty that will agree loans for up to four sharers, so with a little time and patience it should be possible to find a good deal.
Think carefully about how to split the mortgage costs and if necessary, take advice. According to Ray Boulger, senior technical manager at mortgage brokers Charcol, banks who accept sharers will often still stick to the rules for couples when it comes to deciding how much to lend. This means that three or four people buying together might not be able to borrow that much more. If it is important to raise as large a loan as possible, Mr Boulger suggests basing the mortgage on the salaries of the two highest earners.
Make sure you agree up front what will happen if someone wants to move out, and have a solicitor record everyone's share in the property, including deposits. 'And, if you have not lived together before, consider renting for six months first,' says Mr Boulger. 'Even good friends are not always suitable sharers.'
The views represented in this article are those of the author and not of Channel 4. The purpose of the article is to provide general information only and does not constitute financial, investment, legal or other advice.You should not rely on any information provided in this article and you should always seek out independent professional advice relevant to your own particular circumstances.
