I'm in the unique and lucky situation in that my dad is willing to buy a house/condo for me.
When he first told me, my first thought was that I wanted to get a home loan and put a down payment myself because otherwise it would feel like "cheating" in a way. It would feel like I didn't earn it or deserve it. I know that is a privileged problem to have, but I think there's something to say about earning one's own keep.
As I've been looking into it further, I'm considering the offer more now. I don't have enough for a 20% down payment, so I would have to pay pmi insurance, which seems like a waste of money to me since it can be avoided.
Another option is for him to help me with a large down payment and for me to finance the rest, which would allow me to buy a nicer place and a better area than if I was doing it on my own.
I think he also sees it as a good investment opportunity, as the house could later be rented out or appreciate in value, and he has no real estate in the US (our culture is more collectivist when it comes to family wealth, so my house is everybody's house and vice versa).
From a personal finance standpoint, the obvious answer is "duh, go for the free house you idiot." However, I'm also considering the satisfaction that comes with doing it on my own and earning it myself.
Thoughts?
Submitted April 08, 2017 at 12:52PM by buyorbuy http://ift.tt/2oQftap
