How to deal with this property?

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date How to deal with this property? ALiang 12-31-2009  Re: How to deal with this property? Ron Peterson 12-31-2009  Re: How to deal with this property? Don 12-31-2009  Re: How to deal with this property? Igor Chudov 01-13-2010
Posted by ALiang on December 31, 2009, 5:05 am 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! Posted by Ron Peterson on December 31, 2009, 12:17 pm > 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? 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. > 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? You could offer to make him half owner for $100,000, and then may off the mortgage. > 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….. 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 Posted by Don on December 31, 2009, 5:39 pm > 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….. 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. Posted by Igor Chudov on January 13, 2010, 1:00 pm 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 > 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! > Similar Threads Posted how to deal with K-1 in TurboTax? March 10, 2010, 10:29 pm Taxes 2010 and proposals to deal with various expirations July 22, 2010, 2:41 pm Funding an LLC through the contribution of property July 11, 2007, 12:03 pm Lease to Purchase : Property TAX ? 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