For Parents: Would you Purchase your Kid a House?
Personally, for me, I understand that money isn’t everything, but it does help to keep the family together especially being in touch with the kids.
Moving forward with the title, the high rise in property prices especially in big cities is alarming. Would you help buy your kid home to get them started with life? How can you possibly do this? Here we discuss more on this.
A Starter Home – Best to Start with
Before going into helping a child acquire a home, be certain that he or she can afford the taxes on the property, maintenance, mortgage payments and other costs on the house – if not, you will be spending more afterward.
Is of no use buying a child a house worth more than his income. Starter home such as the Doral real estate can help a child get into the market, then as time goes on, he can be able to build equity that can lead to a desirable place.
Consider Gifting the child
There are no negative tax consequences if you decide to gift a child with cash in other to help him buy a Doral estate homes unless you have to put up investment at a profit for sale to free up the cash, in which case taxes could be owed on a capital gain. If your child who is of age purchase a house in her name and lives in her place, then she will be able to use her principal residence exemption later to shelter any gain from tax. Note that if your child is married and then divorces his or her partner, the value of your gift will be divided between her and her ex-spouse. Making a gift to your child before marriage means she’s entitled to the value of the property and may not have to split it with her spouse upon marriage issues.
Request for a loan to help your kids.
There are no negative tax consequences in lending money with the purpose of buying a home, especially in the medley estate homes. Lending money to your kids to purchase a home might even be a better option. You will gain some control over the property when put up as a mortgage. The mortgage can yield interest or not with specific repayment terms, or simply due upon demand.
You will be entitled to collect back the balance of the mortgage outstanding if only your child goes through a divorce and this will help retain the dollars in your family, rather than giving it out to your spouse.
