A few years ago my parents paid off their house (house is in both their names), worth about 900k. At the same time, my dad's business was having troubles so they took out a new mortgage on their house for 400k. Since then my dad's business has not made any profit (he effectively makes no money for our family) and my mom has only been able to pay the interest on the loan. In short, they are both in their 50s and owe $400k. I don't see how they will be able to pay this off in their lifetime because my dad is a stubborn retard (won't sell business) and my mom doesn't make enough money.
Our house is located in a great area with a great school district. However, the house itself needs maybe $100k in repairs (very rough estimate) due to poor management from parents (mainly due to my dad, because he is a stubborn retard). My dad "doesn't allow" repairs and keeps literal trash in the house/backyard.
I am 22 and live with my parents because my job for the next 5-10 years is less than 10 minutes away. My uncle is scared that the bank will take the house so my uncle wants me to buy the house off of my parents for 400k. He said that he will cosign a loan with me and I that only have to pay half. He said that doing this would ensure that our family keeps the house, lessen the financial burden on my mom (he is her brother), and that both he and I would get a tax benefit. I make 65k a year and he makes ~75k a year.
If I do this, I can effectively save the house and start repairs (because I will own it). I would essentially be buying a 900k house for 200k + repairs. However, I am 22 and really don't want a mortgage hanging over my head. Can anyone give me some advice as to whether or not I should do this?
I know there's a good chance my dad will not agree to "sell" the house to me, but for the purpose of advice please assume he is willing to. Mom is already onboard.
Gotta be a legit sale. It would be normal if house was passed to offspring anyhow. I tried to convince my sister to sell me but she wanted to handle it. I already knew she would f things up and she did. Get it in your name or you are throwing away money.
Luis Williams
Oops. I learned a lesson about namefagging.
Brandon Rogers
if i go through with this the house will be in mine and my uncle's names. We will remove my parentts' names 100%
Gabriel Price
absolutely horrendous idea, this type of question comes up on the internet constantly and I cannot believe how many families would drag their young kids into their financial nightmares
your tax benefit will be severely limited under the new tax law you will have joint ownership on a million dollar house that you owe massive property tax on... with your fucking uncle you will have tenants that don't pay you anything and probably resent you
Julian Flores
If you are gonna do something this important in life you need to set some rules with your parents about this. Taking 400k out mortgage out to keep an already failing business going only for it to fail more is their problem. If you agree to buy the house from them you control what comes, in what stays in, and what is to be repaired. They are family, but this is a pretty big financial problem. Taking out a 400k mortgage on a PAID OFF home sounds like the dumbest shit I've ever ever heard regardless of what the money is needed for.
Joseph Price
I know this is hard to believe but my uncle has no ill intentions. He never married and treats me as if I were his own son (if he had one). My mom would be helping out with my/uncle's mortgage and my dad would effectively be free to focus on his dying business. If his business finally dies and his name is not on the house, he has no other personal assets and would be forced to sell his business property. I agree that my parents are retarded. I am not going to argue that. I will make it crystal clear that if we go through with this the house is no longer theirs (mainly dad, mom never had a say in the house) and that everything regarding the house will be decided by me (uncle is giving me 100% control of the house). I will prepare a list of things and repairs that will dealt with within a year as to not "surprise" my dad.
Tyler Ward
It isn't a bad idea in the big scheme of things. I bought my house at 23. They should pay some rent but, even if not, you are building a legacy for the future.
Noah Mitchell
>just subject line: No
>read the thread: It's still a no.
If you had the capital upfront to buy it from your parents, I might have agreed with your uncle that that was the way to go. Unless the house is on some decent land--there's no guarantee the school district will still be good when you're thinking about having kids--the cost of repairs, alone, make it an unattractive investment. These homes that boomers live in, especially if they're poorly maintained, are money sinks. It sounds like you aren't financially stable, just yet, and don't have the resources to take care of your parents.
Talk your dad into selling or taking some business classes because he clearly has no idea how to run a business.
Liam Turner
your parents are out of control and you will NEVER get them to agree to let you help them because they're boomers go find your own house
Camden Clark
this, your parents dug their own grave. the problem isn't a mortgage, it's great if you can afford a house so young. the problem is the baggage that comes with it. save your money, time, and stress and buy your own house. you're in for a trip if your first home ownership is involving your shitty parents and a poorly maintained house.
Aaron Allen
>talk your dad into not possible We are hoping that if my dad's business fails and he doesn't have a property to get more loans, he will be forced to sell the business's property.
They are immigrants so technically my parents aren't boomers.
It will be impossible to find a house as nice in my area for 200k (technically 400k). Houses here usually start at 600k
Carter Gonzalez
>my uncle has no ill intentions IT DOES NOT MATTER do not get into intertwine your finances with family EVER stay the fuck away from this dumpster fire clean your hands of it move out even, fuck commute 15 minutes instead of 10
Levi Fisher
This Is evidence that you are talking to children. Owning property is how a common joe can die a rich man. This can be your first of many. (I should have said that I bought my "current" house when I was 23. I purchased some humble property when i was 18 and it allowed me to get minor loans that turned into bigger things. I never made it huge but I got to where I wanted to be. Most don't have the balls to reach for opportunities when they see them.
Xavier Myers
You need to add the cost of the repairs, upkeep, and property taxes into the cost of taking on the loan. It's just not a wise idea, especially if your dad is stubborn and stupid enough for this to have become a problem in the first place. Given that your family are immigrants there might be enough family values left in your dad to beat him over the head with the fact he's driving your family into ruin and guilt him either into better business practices or selling. However you look at it, your dad's in the way, and unless you legally cover your ass you might just be out of $400,000 (assume you're taking on the full cost of the loan, too, because there's no guarantee your uncle will follow through).
Don't be surprised if your manages to find another huge loan, even without the house to use as collateral.
Alexander Johnson
Would you really recommend he start out with a six figure loan on a million dollar house? There's wiser ways to play that came that won't ruin him
if you really out of option, you can save some amount of cash, try get a caravan and ask your parent to live in together.
Next, sell the house. If the house sale is profit u are good, if under value u r in trouble.
If that trouble is your case, declare bankruptcy for your parents so that bank or any court order can't chase after your parents. since you still have a clean financial record, start over a new chapter of life.
David Diaz
>living in a van no >sell the house Where would we live if we sell the house? Only one of my parents makes any money and I don't want to pay rent to live WITH my parents.
Nathaniel Lee
These guys are dummies OP
Cooper Phillips
Hey OP.. do you have problem with your dad? I hope not.. I suggest your dad to sell the house, and buy cheaper one (without debt of course).. You should try buy house in rural area.. I know it might be far from your workplace, but it's a safe choice..
Get out of debt as soon as possible, don't try to pay debt with other debt or you'll end up suffering, man.. I have similar problem too..
Your dad is stubborn? I hope you're not as stubborn as him..
Joshua Anderson
No way in hell are you gonna get 900k for that house in the coming years, only our parents generation could afford that kind of luxury - people our age want starter homes, not money sinks for all the kids they can’t afford to have.
Gonna add another No to the pile - don’t do it unless you plan on selling immediately
