My husband and I (29 y/o) live in a HCOL area with a household income of almost $300K. We are currently renting, and truthfully cannot comfortably afford a home in our area with current prices and rates.
My in-laws recently offered to let my husband and I move into their second home (3b/2b condo purchased for $750K in 2020, now worth $1M+), with the intention of transferring the title to us with a few contingencies:
1) We pay my in-laws $100K by June 2024 as they need cash flow. They are retiring this year and they were originally going to sell the condo to support their retirement. 2) Once we move in, we begin to pay the remaining $400K mortgage ($5K/month including HOA, insurance, and accounting for property taxes). The condo will stay under my in-laws’ names until mortgage is paid off. 3) In 10 years, or once the mortgage is paid off, we pay my in-laws back what they had already invested into the home ($350K)
In total, we’d pay my in-laws $850K for a $1M condo. We currently have $100K in investments and will receive a $50K gift from my mother (bless her), which will go towards #1-2.
If we don’t take up the offer, my in-laws will sell the condo and gift us $100K instead.
The offer seems like a no brainer, but is there anything we are not considering? Is it a bad idea to eventually transfer the title to us?
We will sign a contract before committing but I don’t want to make a bad decision because we’ve worked hard to save this much.
Submitted June 30, 2023 at 01:37AM by Minute-Initiative366 https://ift.tt/Czlju1P
