Author Topic: Buy apartment give adult child option to lease to purchase? rent and or???  (Read 1076 times)

pudding

  • Bristles
  • ***
  • Posts: 357
Im selling a house and will have 750k in hand.

Daughter and grandkids currently live in house along with dog.

City we live in is expensive and rentals are at less than 1% vacancy rate.

They were living on the east coast and came to live over here on the west coast a year ago and moved into my house. I have to say it is really nice to be able to see them, particularly to see my grandkids growing up. And if they moved back to east coast, probably would see them maybe once a year or maybe less.

Me and daughter, hmmm.. I guess like a lot of parent / adult relationships can be difficult.   Actually its mostly difficult.

I was thinking to buy an apartment and they could live in it.

I've got to be real about it and can't be coddling my adult child or putting myself in a risky or vulnerable position if we have some argument at Christmas time and don't speak for a year etc....  the usual family disfunction stuff.

I lent daughter money to buy a car a year ago and so far she has paid me back each month and also paid the agreed rent a the house. So things that way are OK.

Any thoughts on this? I want to try to be helpful and realistically to serve my own wants and needs to have them around. However would hate to have it turn into a messy situation.

But I would hate to sell my house and that have daughter move way the heck to Toronto.  It's almost like the money I'd get from the house sale would be a bit of a downer if I end up living in this city without any family around. Particularly grandkids as any grandparent knows are a great source of joy.

My thoughts are;

1. Buy an apartment and straight up rent to them. I would do a deal a deal on the rent to make it affordable and so long as the interest and other expenses were covered I'd chip in the rest. (if I rented it all full rent they wouldn't be able to afford it)

2. Buy an apartment and with an option to lease and purchase in a few years when and if she's in a position to buy.

3. Buy now and joint own the place, me on title with legal document to say we jointly own and share any profit and loss. ( I did this once with a friend on an investment apartment and it worked out)

4. Talk to my friend who has quite a few rentals, they're usually affordable but a bit run down. May or may not have anything and not particularly secure.

Any thoughts appreciated.

matchewed

  • Magnum Stache
  • ******
  • Posts: 4337
  • Location: CT
Maybe you could clarify the situation a bit. Are they living in the house you are selling? I don't really get the scenario.

Dillydally

  • 5 O'Clock Shadow
  • *
  • Posts: 27
When you die, are you leaving everything to this daughter? Tax implications might be better for your daughter now and in the future if any house/apartment is in your name 100% and she inherits it. Compare both scenarios or ask an accountant. If she rents from you, but knows that she will inherit the property eventually, it will likely feel about the same to her, but leave you with more options?

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