Author Topic: Shared Mortgage  (Read 2020 times)

Vangogh

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Shared Mortgage
« on: September 26, 2014, 01:28:54 PM »
I was wondering if the great wide interwebs have any experience or recommendations concerning split mortgages.

My wife and I live in northern bc but want to FIRE in quebec. A house just came on the market that is essentially the perfect property for us but is more than our budget for housing. Her parents are also looking to move out of the city into a more private place. Along comes this listing on MLS.ca and long story short we are pretty interested. Houses in this area, with this kind of land are generally selling for twice as much.

http://passerelle.centris.ca/Redirect2.aspx?CodeDest=VIACAPITALE&NoMls=QC17312197&Source=WWW.REALTOR.CA&Langue=E

The idea would be to fund half the mortgage from our side and half from her parents. Her parents would like in the guest house while we tear apart the main house and give it much needed renos. All the reno's would be done by us except some electrical and structural stuff.

Anyway, what do you all think?

RichMoose

  • Pencil Stache
  • ****
  • Posts: 945
  • Location: Alberta
  • RiskManagement
    • The Rich Moose | A Better Canadian Finance Blog
Re: Shared Mortgage
« Reply #1 on: September 26, 2014, 01:38:07 PM »
Are you considering a tenancy in common, or a joint tenancy arrangement?

frugaliknowit

  • Handlebar Stache
  • *****
  • Posts: 1627
Re: Shared Mortgage
« Reply #2 on: September 26, 2014, 02:06:36 PM »
Beautiful property!!!

Lots of potential conflict, especially if you are not agreeing to each improvement and splitting it.
This is a huge commitment where you are financially married to your wife's parents.
Does your wife have siblings?  How might this affect each parties estates?

MarciaB

  • Bristles
  • ***
  • Posts: 469
  • Age: 57
  • Location: Oregon
Re: Shared Mortgage
« Reply #3 on: September 26, 2014, 02:30:25 PM »
You are right to be cautious on this. Anything you and your in-laws arrange will have complications and such...so if you decide to do this GET EVERYTHING IN WRITING.

Create an agreement that works for all parties, spell out all responsibilities (financial and otherwise) and lay out a contingency plan if one of the parties dies, decides to move, divorces, becomes disabled, etc.

Then (wait for it) PUT IT IN WRITING and have everyone sign it. You'll be glad you did.

GizmoTX

  • Handlebar Stache
  • *****
  • Posts: 1321
Re: Shared Mortgage
« Reply #4 on: September 26, 2014, 04:51:54 PM »
Put this in a Family Limited Partnership or something similar. This gets everything in writing & makes the property a separate entity. You & the in-laws are members or shareholders. A mortgage is but a part of managing this well.

Vangogh

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Re: Shared Mortgage
« Reply #5 on: September 26, 2014, 05:54:54 PM »
The FLP and FLLP are very interesting vehicles. I think that will be the tree I bark up. Thanks for everyone's input opinion on this.