:

How to deal with this property?


Situation: I currently own a home, which I bought for around 200K a few years ago. I guess it is worth about the same value now. I?ve already paid about 100K so far. However, I am unemployed now. I guess I will not seek another employment for the near term. My partner lives with me for the past years. He is willing to help me with the rest house payment, and of course he also wants to own half of the house. In the mean time he could be qualified as a first-time home owner.
Solution 1: I add him to the house deed. So we co-own the house. And then the mortgage will be refinanced to him. But I guess he won?t be able to take advantage of the $8000 tax benefits, right? We also want to make the legal agreement that we each have the 50% share of the house. But how to do that?
Solution 2: I sell the house to him for 100K. So he could definitely get the tax benefit. But I am worried my rights won?t be protected. Although my name won?t be listed in house deed, can we still make a legal contract that I own half of the house?
Solution 3: I simply sell the house. And let him buy another house so we can move in. But the moving, selling the house, all the hassels?..
You opinion will be greatly appreciated!
Reply to
ALiang

First get the house appraised and inspected so that you know what the house is worth and if you may have some unsuspected maintenance issues.
You could offer to make him half owner for $100,000, and then may off the mortgage.
That might work especially if you could buy two halves of a duplex, living in one and renting out the other.
Or just consider renting for the near term until the economy recovers.
-- Ron
Reply to
Ron Peterson

Or, you could buy another house under joint ownership, but keep the old one and rent it. The rent from the old one contribute to the mortgage payments on the new one. If not, you could consider getting a new place somewhat less expensive, so that the rent from the older larger place would go further toward the mortgage on the new one.
Think positively. The hassles you are referring to are probably no worse than a daily commute in rush hour traffic. Get a house closer to your workplace and you come out even.
Reply to
Don

Let me try to get this right: your partner wants you to give him/her half your house, in exchange for a verbal promise to continue paying your mortgage? In any case, I would seek advice of a lawyer that you select, and go alone, without your partner.
Some of your solutions leave you rather unprotected.
i
Reply to
Igor Chudov

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.