Reduce Risk of Property Investment

Working your way up the ladder by buying and selling properties for profit is a great way to earn money, providing that the market doesn't collapse and leave you stranded with a property that no one can afford to purchase. Possibly the scariest prospect of your property venture is the fact that you will shoulder the burden of responsibility that inevitably follows with buying property. If we are honest, a problem shared is a problem halved and when it comes to taking responsibility for something as significant as buying and selling houses, it would be great to be able to halve any problems!

There are pros and cons of forming partnerships to share the burdens and the most obvious benefit is that you get to share the starting price. Equally as obvious though is the fact that all the profits will then be split if you have a successful sale which can be highly annoying! The main aspect that needs careful consideration before jumping head first into a joint property project is the negative impact that money can often have on relationships. It can be a fatal trap to fall into and if you choose to work alongside a family member or friend rather than an insignificant partner there may be trouble ahead.

The successful relationship of a joint venture with someone close to you will largely depend on your personality as well as your current relationship status. If you are able to express your feelings without getting frustrated and angry when confronted with stressful situations then you stand yourself in better stead to be successful. You also need to be confident to be heard on major decisions and it may be a good idea to form an odd numbered partnership so that the majority rules vote can come into play.

Investing into property with someone that you know means that you already have an established relationship with them and it makes discussions and meetings comfortable as everyone feels more at ease with each other. The only downside of feeling more at ease in each other's company is that this can lead to complacency and many people may feel more inclined to start an argument, rather than discus a problem, with someone they are comfortable with.

It is vital to really consider all the potential pit falls in investing into the property market with a loved one as not only are you risking your money but you are also potentially putting your relationship on the chopping board and simply waiting for the knife to strike. If the whole venture goes down the financial drain you run the severe risk of leaving the partnership with no money, no property and no relationship.

When the roof caves in and walls crumble to the floor, a friendly partnership may prove invaluable as you have a shoulder to cry on and financial back up all rolled into one person. One of the major concerns when you do business with someone who you do not know is that niggling worry in the back of your mind that at any point in time they may rip you off and pull the carpet out from underneath you; a worry that will, or at least should, be eliminated if you work in conjunction with a friend or family member.

Development and progression can be hampered as potential work orientated meetings can fast become social jamborees where everyone falls down the slippery slope of getting too comfortable. Let faces it, enjoying a few beers and a summer barbeque during a discussion about your next step will always bring in outside opinions from wives, husbands, parents and if you are really unlucky; the dog. This can lead to messy and unclear collaborations that can spiral into resentment and deeper set issues that simply can't be resolved and all because the dog wanted to make the garden bigger and your partner opted for a conservatory that got obliterated in a storm.

It is notoriously tricky to separate your work life from your home and social life so be prepared that if tension raises its ugly head in the workplace, feelings will also be apparent in the local pub. Make sure that a good business plan is written up by everyone involved to confirm that you are on the same side when it comes to ideas and routes forward and having the same visions on time frames, finances, responsibilities and property types will make the process smoother and hopefully divorce free.