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whatever goes on between a parent and child can sometimes be irratiional,biased ,out of ordinary,defy logic>unconventional,creative ,so on,so forth !
If I suggest this scheme to my father ,he will throw me out of the house(his house)
Op comes to ask for opinions and then proceeds to bicker at people that gave opinions.
Why did you even ask when you already made up your mind and all you want to do is prove yourself right?
OP has only responded once,he is not bickering at people who have opinions/
It sounds like he is well heeled to finance the purchase of a new home for his son.Personally I would not use my home to finance the purchase,use other assets.like a diamond tiara worn by Queen Victoria
It sounds good to me to help the kids out with this.
But you want to protect yourself and your son.
So buy the house and put it in your name and rent it to them at a reasonable family-discount price of something that at least pays the property taxes and insurance (must have).
Then at some point, let them buy it from you with a bank loan after they have jobs and are settled in.
Be careful you don't cross any IRS gift tax lines.
You want avoid the biggest danger:
Suppose you had put the house in their name, and they get married, and they split up. Now suppose lawyers and some judge decides she should get half of it.
Keep it in your name until they get a bank loan and don't owner finance it.
If you were to have liquid assets to do this, go for it. However, I think it's foolish to take out a HELOC on your primary residence to fund this.
Quote:
Originally Posted by Thulsa
It sounds good to me to help the kids out with this.
But you want to protect yourself and your son. So buy the house and put it in your name and rent it to them at a reasonable family-discount price of something that at least pays the property taxes and insurance (must have).
Then at some point, let them buy it from you with a bank loan after they have jobs and are settled in.
Be careful you don't cross any IRS gift tax lines.
You want avoid the biggest danger:
Suppose you had put the house in their name, and they get married, and they split up. Now suppose lawyers and some judge decides she should get half of it.
Keep it in your name until they get a bank loan and don't owner finance it.
If you're set on doing this, then I second what Thulsa said except I'd add to the rent payment the amount of your HELOC payment. Charge them the amount of the HELOC payment, taxes and insurance. With the stipulation that they would have to obtain a bank funded mortgage on the property ASAP (and I'd expect them to use the equity in their current home as the down payment and you could gift them some cash to make the updates).
I'll give it to your son - after paying for his undergrad and grad degrees plus giving him money toward the purchase of his first home he has some testicular fortitude asking you to put your home on the line.
Oh it was Joylush moaning so much I confused her and op
Yeah, must have been a senior moment. But you can’t very well use that excuse as your reason for insulting someone who just has a different opinion than yours.
You very well may not have the means to help a family member with a large purchase or have a family member worth such consideration. But you, are not everyone.
It is situationally dependent. Thus, you evaluate the pros and cons, do what you can to mitigate the cons and decide from there.
I have actual experience doing this very thing with family members, friends and strangers. Although it never involved borrowing on my end to do so.
Aren't you the ones who worked an agonizing 35+ years, day in day out, to save? I get it that your son is your son but he has to stand on his own feet.
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