Sharing ownership of a house

[az240zz]

I'm contemplating buying a house with my in laws. I would live in the house until the time comes when I can't or I die, At that time they would receive ownership and be entitled to the value of the house.

My question is, how much of the purchase price should they contribute and how much should I. Is a 50/50 split equitable or should it be more 70/30 with me putting up the 30.. or should it be higher.

Thanks in advance

 

[Dude]

I'm contemplating buying a house with my in laws. I would live in the house until the time comes when I can't or I die, At that time they would receive ownership and be entitled to the value of the house.

My question is, how much of the purchase price should they contribute and how much should I. Is a 50/50 split equitable or should it be more 70/30 with me putting up the 30.. or should it be higher.

Thanks in advance

Money with family can change things in a hurry. What's you goal? Do you need the help or are you setting things up to make it financially easier when you pass. Obviously you need everything stipulated in writing by an attorney. If you're going to just contribute less than 51% without a contract you would leave yourself as a minority owner with them having majority control. Hence the need for a contract written up by an attorney. In you contract you can counter the fact you contributed less financially at the time of purchase due to the fact they will be receiving all equity gains as well as your initial investment at the time of your passing. The last thing you want is anyone having a majority ownership in a home you're invested in that's your primary residence. Of course there are other issues such as dividing taxes, maintenance, and improvements that need to be stipulated in the contract as well.

After covering all of that as to your initial question it really doesn't matter that's a personal decision between you and them. I find you contributing 30% more than fare. I would consider contributing only 25% if I was you. It just depends on how much money they have. In the long run it's definitely a very nice financial gain for them so I find that fair. I would take a free 25% to 30% property investment any time. Assuming of course the property is a worthwhile investment in the first place.

 

[AZ Native]

I will never lend money or go into a transaction again with a friend or family member. I now have a son who won't return my calls or even acknowledge that I am alive on birthdays, father's day, etc. I can't see my grandchildren. We were always close and he was the best son I could ever ask for. However, business is business and there is nothing good that will come from such a transaction. I never saw this coming, but it did. Just my 2 cents.

 

[az240zz]

I will never lend money or go into a transaction again with a friend or family member. I now have a son who won't return my calls or even acknowledge that I am alive on birthdays, father's day, etc. I can't see my grandchildren. We were always close and he was the best son I could ever ask for. However, business is business and there is nothing good that will come from such a transaction. I never saw this coming, but it did. Just my 2 cents.

Sorry that you have experienced this. I have a family member who I gave financial support years ago but seems to have forgotten it.

 

[az240zz]

Money with family can change things in a hurry. What's you goal? Do you need the help or are you setting things up to make it financially easier when you pass. Obviously you need everything stipulated in writing by an attorney. If you're going to just contribute less than 51% without a contract you would leave yourself as a minority owner with them having majority control. Hence the need for a contract written up by an attorney. In you contract you can counter the fact you contributed less financially at the time of purchase due to the fact they will be receiving all equity gains as well as your initial investment at the time of your passing. The last thing you want is anyone having a majority ownership in a home you're invested in that's your primary residence. Of course there are other issues such as dividing taxes, maintenance, and improvements that need to be stipulated in the contract as well.

After covering all of that as to your initial question it really doesn't matter that's a personal decision between you and them. I find you contributing 30% more than fare. I would consider contributing only 25% if I was you. It just depends on how much money they have. In the long run it's definitely a very nice financial gain for them so I find that fair. I would take a free 25% to 30% property investment any time. Assuming of course the property is a worthwhile investment in the first place.

Its a financial thing. Im 71 my wife 65 and i have to sell my home. My thought was to use the equity from my home sale to offset the ss that we receive. They are insisting that the home will be near them, which would make us semi permanent baby sitters. We have the grand kids often but if we live near them it would be too much.. But are we being selfish?

 

[Dude]

Its a financial thing. I'm 71 my wife 65 and I have to sell my home. My thought was to use the equity from my home sale to offset the ss that we receive. They are insisting that the home will be near them, which would make us semi permanent baby sitters. We have the grand kids often but if we live near them it would be too much.. But are we being selfish?

I think you're saying you would use the equity to add to your social security to live on and that your hose now is to much for your current financial situation. This might be more than you want on a open forum if so you can PM me.

I would need to know how much equity you would get. How much you would save with a new house payment. How many years you need it to last and if it's even enough to spreed out over that time frame. What state do you live in?

I would also add it sounds like they're already wanting it their way and no you're not being selfish. I would sell if I could and down size to a condo or a small home in a 55 and over community you could cash out or get a payment that you can afford and keep some cash. That is if the house payment drops enough for you to live on. Families that inherit homes after a short time in a lot of cases dump them to get the money. It's a great place in any home market to find a great investment. Especially if you're a cash or almost cash buyer. They just want the money fast.

 

[Linderbee]

Have you considered a reverse mortgage?

 

[Dude]

Have you considered a reverse mortgage?

I wonder about those I would like to know more. I must say I know nothing about them. That would be nice if they really help people stay in their home.