Mortgage Loans, Rates, Home Buying, Selling, Foreclosures » shared http://www.ourbroker.com Consumer Real Estate Information Since 1996 Wed, 08 Feb 2012 14:01:56 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Can I Use Shared Equity To Buy With My Children? http://www.ourbroker.com/library/can-i-use-shared-equity-to-buy-with-my-children/ http://www.ourbroker.com/library/can-i-use-shared-equity-to-buy-with-my-children/#comments Fri, 29 Aug 2008 09:26:54 +0000 Peter G. Miller http://www.ourbroker.com/?p=860 Can I Use Shared Equity To Buy With My Children? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

]]> “Shared equity” is generally seen as a way that families can buy real estate together. The kids live on the property and get the benefits of property usage and ownership tax advantages while Mom and Dad get an investment write-off equal to their proportional interest in the property. (Shared equity arrangements, incidentally, can also be among friends, relatives, or business partners.)

Under a shared-equity arrangement, if you own half and the resident investors own half, you must pay half the mortgage, taxes etc. The resident owners must pay their half, plus they must pay a market-rate rent for your half of the property for the non-resident investors to have a deduction. Of course, once they have paid, you can also give them a gift equal to some portion, or maybe all, their rent.

You will need to work out an equity-sharing arrangement with the help of a local attorney and CPA. A broker can find an appropriate property.

Both you and your children or any other co-owners will need wills, living wills, and a proper equity-sharing agreement. You will need to understand what happens if the resident investors are laid off (you are responsible for the mortgage), or if you and your children become estranged.

Can I Use Shared Equity To Buy With My Children? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: children, equity, invest, investment, parents, shared

]]> http://www.ourbroker.com/library/can-i-use-shared-equity-to-buy-with-my-children/feed/ 0