I read a posting from ‘Rachel77’ regarding her parents purchasing Rachel’s 1st home as IP and Rachel taking over purchasing the property from the parents when she was able to.
We now find ourselves in a similar situation and prefer to go down this path, rather than as guarantor. We also looked at the fact that if the relationship does not work out, we still have an investment property. Are there any parents/children out there who have been through this arrangement?
Love to learn from your experience [scholar]
You probably want to look into what it will cost you to do that. Getting the right structure can save a lot of money. You might be paying stamp duty twice unneccessarily. I assume that you wouldn’t charge a higher price for the house when you sold it to your child but if you did a capital gains tax would also apply. Maybe some sort of Trust structure would be the best setup. I won’t comment further as I’m not an expert!!
We also looked at the fact that if the relationship does not work out, we still have an investment property.It’s not real clear, but I presume that you are not talking about your relationship with your daughter, but your daughter’s relationship with some unnamed third party ??
Do you want to specify exactly what your situation is…are we talking about some 30K tin shack or a waterfront mansion…it will probably influence the choice you make.
Dollars / ages / experiences / competencies / strengths etc…, you’ll probably get a more informed suggestion.
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