BigNick
Thinks s/he gets paid by the post
Feeling pretty good this week. DD and her boyfriend just moved into their first owned home, in the (pricey) south-east of England.
They paid about $600,000, of which we put in one-third. We looked at different ways to structure this (for example, as an interest-free loan, or as a three-way purchase), but in the end we gifted the money to DD as an advance on her inheritance, so she owns two-thirds of the house and DBF has one-third.
They have equal shares in the mortgage. She earns a little more than him, but he recently got a promotion and can easily afford his share. He is from quite a humble background and is not used to this kind of thing, so we've been helping a bit with plan B. In particular, we have told him that if they split up, we will buy his share out at fair market value.
Part of me feels bad that people in their early 30s with good professional jobs need help from "The Bank of Mom and Dad" to buy property these days, because our generation is hoarding much of the wealth, but part of me is pleased that I did the planning for many years to make this possible.
They paid about $600,000, of which we put in one-third. We looked at different ways to structure this (for example, as an interest-free loan, or as a three-way purchase), but in the end we gifted the money to DD as an advance on her inheritance, so she owns two-thirds of the house and DBF has one-third.
They have equal shares in the mortgage. She earns a little more than him, but he recently got a promotion and can easily afford his share. He is from quite a humble background and is not used to this kind of thing, so we've been helping a bit with plan B. In particular, we have told him that if they split up, we will buy his share out at fair market value.
Part of me feels bad that people in their early 30s with good professional jobs need help from "The Bank of Mom and Dad" to buy property these days, because our generation is hoarding much of the wealth, but part of me is pleased that I did the planning for many years to make this possible.