I currently live in a small home in the suburbs of a large city. My parents bought it as an investment in 2011 for pretty cheap. It has nearly tripled in value in the past 11 years. Furthermore, I am about to graduate and I already have a job lined up in the city that will give me a salary of ~$70k.
Recently I have been thinking that it would be a great idea if my parents sold this house within the next year. Then, in 1-2 years' time rolled that money into a large downpayment on a larger family-sized home for me to live in. I could take out a mortgage on the remaining 30-50% and have it taken care of within 8 years. After that, I would start buying my parents' equity (if they wanted me to) until I own 100% of the house.
Pros for me -I pay less interest on a mortgage -I get sizable equity in the house sooner (useful if I need to sell within the next 8 years for work) -Increased buying power for houses in the area
Pros for my parents -They relinquish all responsibilities for house maintenance -More room for them to stay when they come to visit me and my young family -Their investment will continue to grow -Steady flow of cash after they retire from me buying their equity
Cons for my parents -Their money becomes tied up in an investment for 10+ years, or until I sell (they are in their mid-50s)
For those with more mortgage/house finance experience; Is this line of thinking flawed? What am I not considering here? Thank you so much for any advice you may have!
Submitted September 27, 2022 at 03:08AM by Speedshipp https://ift.tt/B287o1f
