A few years ago, I often heard parents of young adults wondering how their kids would ever be able to afford to buy a home in Orange County. The prices of homes had skyrocketed so that even older one-bedroom condos were selling for $500,000 or more.
Now that the buying frenzy is over and home prices are lower, you may want to consider assisting your older child in becoming an Orange County homeowner! With this plan, you make the down payment and are the guarantor on home loan. Your child pays as much, or all, of the monthly payments instead of rent. After a few years, when real estate prices go back up, you can sell the home for a profit, get your down payment back, give your child his or her share of the equity, and he or she can use this money to make a downpayment on a another home. Or, if your child wants to stay in the home, you can get it refinanced, get paid back your investment, and feel good knowing you have helped your child to buy a home in Orange County.
If your child does not keep up with his or her part of the agreement, then they would need to move out so you can rent out the property until you decide to sell.
It is important to set the ground rules before entering into this sort of arrangement. Of course, not every older child is suited to this type of deal. The older child must fully accept that this is a financial investment on your part and that it will always be handled that way. Make a written agreement in clear language and have the older child sign it prior to the purchase to prevent any misunderstandings.
April Hay, GRI, Realtor Call Me!
http://www.GreatMissionViejoHomes.com/ ,
http://www.socdreamhomes.com/ ,
http://www.411short.com/ ,
http://www.eragenerations.com/ ,
Now that the buying frenzy is over and home prices are lower, you may want to consider assisting your older child in becoming an Orange County homeowner! With this plan, you make the down payment and are the guarantor on home loan. Your child pays as much, or all, of the monthly payments instead of rent. After a few years, when real estate prices go back up, you can sell the home for a profit, get your down payment back, give your child his or her share of the equity, and he or she can use this money to make a downpayment on a another home. Or, if your child wants to stay in the home, you can get it refinanced, get paid back your investment, and feel good knowing you have helped your child to buy a home in Orange County.
If your child does not keep up with his or her part of the agreement, then they would need to move out so you can rent out the property until you decide to sell.
It is important to set the ground rules before entering into this sort of arrangement. Of course, not every older child is suited to this type of deal. The older child must fully accept that this is a financial investment on your part and that it will always be handled that way. Make a written agreement in clear language and have the older child sign it prior to the purchase to prevent any misunderstandings.
April Hay, GRI, Realtor Call Me!
http://www.GreatMissionViejoHomes.com/ ,
http://www.socdreamhomes.com/ ,
http://www.411short.com/ ,
http://www.eragenerations.com/ ,
