A question about real estate, home purchases and m... - Page 2

Lipstickdiva · ‎03-10-2010

Not trying to be nosey but is there a reason they don't just get the property themselves? That way they are building credit.

Rules are different when you aren't going to be living in the property yourself. Also, I'm not sure about your city but here, any rental properties have to be inspected by the city every 5 years and there is a fee to have that done. You might want to look into that too just so you know.

Also, in my city the water bill cannot be put into a renter's name. Water/sewer bills have to be in the name of the property owner.

Just little things to look into.

KathyPet · ‎03-09-2010

Yes but we would be proving a nice home for my only child and grandchild. That home would I would assume increase in value as did the townhouse. When we bought the townhouse in 2010 we paid $170,000 for it and put $35,000 down. Daughter writes us a check each month that covers the mortgage payment plus taxes and insurance on the TH. Our real estate agent is confident we can get $230,000 for it. After settlement costs and RE commission we would net about $84,000. That profit would reimburse us for the money we withdraw from investments. Then getting a new mortgage for $175,000 on the new house and putting that cash back into the investment account would cover the amount we took out to buy the new house.

KathyPet · ‎03-09-2010

While my daughter has a good job and decent credit my SIL has intermittent work as a self employed contractor and lousy credit. My daughter's income alone would not qualify them for the mortgage and his income is sporadic and difficult to confirm. Yes, they do keep their finances separate so his ugly credit does not impact on her.

bathina · ‎03-14-2010

The larger question is whether you can afford to make the mortgage payments if the kids can't. If you had to sell the house at a loss, could you absorb that loss without effecting your overall financial situation? If the answer is yes, I say lucky, lucky kids!

Lipstickdiva · ‎03-10-2010

I see Kathy. I would contact some banks, credit unions and S&Ls and see what they have to say. We have some banks that are much harder on people trying to buy investment property and some are very lenient.

brii · ‎06-20-2010

Interesting situation.

I don't understand the need to buy the home so quickly with cash, I guess.

That's nice that you are able to do this for your daughter.

tansy · ‎01-02-2011

Can you verify that the townhomes are selling in 30 days? A realtor is always full of optimism to get the listing, especially with the prospect of selling you a property as well.

Lipstickdiva · ‎03-10-2010

On 5/16/2014 brii said:
Interesting situation.

I don't understand the need to buy the home so quickly with cash, I guess.

That's nice that you are able to do this for your daughter.

I think because these houses are going so quickly in her area and are in short supply.

brii · ‎06-20-2010

On 5/16/2014 LipstickDiva said:
On 5/16/2014 brii said:
Interesting situation.

I don't understand the need to buy the home so quickly with cash, I guess.

That's nice that you are able to do this for your daughter.

I think because these houses are going so quickly in her area and are in short supply.

It just seems risk pulling out of retirement savings. But that's just me...

missy1 · ‎03-10-2010

That's a big risk. How if dd loses job or divorces? Why can't they rent a house like many people do? ..or stay where they are? Many people would love be in a townhouse small or not.(especially since they are not on the loan)