As the shape of families change, more clients are looking into buying real estate with a family member.
Keeping it in the family
Recently two sisters decided to buy a home together. Separately they could each afford a condo but together they could afford a nice house and they already knew they could live together. Combining their buying power made sense. The perfect mortgage solution was one mortgage broken into two parts. Accountant sister can pay her mortgage down as quickly as she wants and teacher sister can relax during the summer months when she has no income.
A mother with a clear title home is considering selling her home and buying property with her daughter and two young grandchildren. The $600,000 equity in her current home can be divided into $300,000 down on the new property and $300,000 into her retirement fund. The new property has two separate living spaces (of course!). Mom’s part will still be clear title and her daughter will have the same size mortgage and payments as before. The grandchildren are so excited.
Keeping it legal
Finding the right property is obviously very important and the right real estate professional will be worth his or her weight in gold.
A co-ownership agreement can keep the future smooth so seek legal counsel before committing. Things to consider are how maintenance, repairs, and renovations to the property will be handled and what happens in the case of marriage, death or if one party wishes to sell.
If you have any questions or would like to know more, please feel free to contact me - I'd love to hear from you.
Susan Shannon, AMP