First up if this is in the wrong section could the mods please move it, not sure where to post/ask and thought in here would be the best
Now this being a car forum and all there seems to be some very switched on people when it comes to non car stuff and I thought this topic might be one of them
First a bit of background , the wife and I were taking the kids out the other day when they asked about buying a house. How much do you need, how do you get a loan etc etc.
We answered the questions at the time and I didn't give it much more thought until an idea struck me the other day. Now it seems like a good solid idea and would need to be done the right way but like all ideas there are pros and cons
Now the idea I had was to set up an account that myself, my wife, my stepson and his girlfriend ( if she chose to and could afford it ) could put a set amount of money into each week (say $200-$250 ) and let this accumulate for 12 months.
Now after the 12 months we would go and buy a house somewhere and rent it out. Now I'm talking a half decent house in a good area not some shitter out the back of no where that no one would ever want.
Once the house was purchased we would continue to pay the same amount each week only this would go off the mortgage and the first 6 months rent would top up the balance in the account so money was available for any repairs or emergencies that may happen (hot water system shits itself, plumbing goes to lunch whatever)
Now after the 6 months the rent would also go to paying off the mortgage till and we would continue to pay until the loan is payed off or all but payed off.
At this point it would be time to use the equity in the first house to purchase a second house and rinse and repeat for more later on with the goal being to setup myself and the wife for retirement as well as give the kids a head start
Now my wife and myself want to get an investment property but also see the kids do alright at the same time and I thought this would be a good start for and make it easier and cheaper if the four of us did it this way.
Obviously I would need to talk to an accountant about how to set it up properly as well as some sort of legal agreement between all parties involved but can anyone think of anything I've missed?
Anyone been involved in this sort of thing or can think of any cons involved
As I said it seems like a great idea but may not be so in reality
Any feedback welcome, or if you don't want to post in here shot me a PM
Thanks
Martin