sambuc

Ok, here goes.

I wasn't sure where to post this but would realy like any advice/opinions anyone has:

Hubby and I have just sold our house in the UK, and cos of the exchange rate will do ok when we bring the money over here.

However, hubby wants to invest some money into his ma and pa's house and buy a third of it (will give them some money for stuff in their final years, and also an investment for us). He has two other brothers, who will not be doing anything. We would get all this done and written up legally.

Hubby wants to do this, I don't. I think its gonna cause more problems than its worth. We do need to invest the money, but am not sure this is the best way to do it. Not sure of the tax implications down the line. Would tie up the money and we have no control of when our investment will be realised.

The house is in a nice town but not a great area for that town, would need alot of updating when it is finally sold ie., new kitchen, bathroom. It is a three bedroomed mid terraced house.

I just don't know what to do, but I feel a rift coming on, he is thinking with his heart and wants to help his mum and dad out. But I am wondering if, when the house is finally sold and we need to update it to sell it, the tax implications both here and in UK and the exchange rate may be not as good as it is right now, we would end up not getting much back for our return.

Please any sensible advice and suggestions would be great.

AdobePinon

Certainly hard to say anything specific, but it certainly sounds like something best not rushed into. I'd say, if you want to invest, pick your own house - you only (typically) have to live in it for 14 days a year to claim tax deduction, but be very careful about the tax effects of renting it. But beware - it's a buyer's market, so don't expect to get much return for a while unless you choose very carefully.

As for his parents' house, I'm no lawyer, but I would be very careful about the legal hierarchy of wills, trusts, estates, and various attached legal documents and liens because I have no idea who would run off with your investment at the end of the day.

Personally, I'd suggest some other way of helping them out.

anotherlimey

My parents put money into my grandparent's house, it caused all sorts of problems with my dad's brother; now he doesn't really talk to our side of the family.

He's an arsehole anyway...

Bob

Can't really help, but you might want to check this site out for info on the palce - http://www.zillow.com/

Ray

Buy another house near where you are now and rent it out ....

Lord Lionheart

Contact this guy, he has some knowledge in real estate;

[email protected]

paddingtongreen

you lose too much control with that investment, and have no way to make sure it is maintained. While you say it will be written up, you have to worry about what will be written up, will it be an interest bearing loan, or will you just rely on appreciation?
A better route for your inlaws might be a reverse mortgage, depending on their ages.

sambuc

I asked for sensible advice

Sally

My Mum signed her house over to my Dad's girlfriend

Your situation sounds very complicated. I guess it would be all right if you were the only child.

Elvira

But he isn't. So, even if the idea as such were sensible (which in my view it isn't), it is likely to cause problems down the line.

I vote "do not touch with a bargepole".

evoal2003

That was.....for him.

evoal2003

Buy a rental in AZ, close to Phoenix and help them in other ways.

Ozzidoc

Don't do it

- you would have no control over this "investment" whatsoever.

- technically u would be responsible for 1/3 of all maintenance costs etc eg new boiler, roof etc and could be arguing with the inlaws as to which boiler etc to buy

- u could not realise the investment (u never know what's around the corner in life, the in-laws may live til they are 100+)

- i'm guessing that the inlaws would not be paying you rent? Or if they were, not the market rent, or if not, because u would be buying 1/3 share for 1/4 the value or suchlike.

- all of these will cause family hassles.... the brothers may not want to help the olds around the house cos "it's partly your house and you are not even here to do your bit"


Other suggestion

- you could give cash to your folks as a gift with no liability etc on their behalf.

- could you not help the folks out in other ways, in conjunction with the other brothers...like get a gardener in for them, pay for 2 holidays a year, get them a cleaner, or make up your own "meal vouchers" whereby they have dinner etc at a nearby pub from time to time, the pub faxes you the bill and you pay for it out of your cash...ie have an account

- speak to an independent financial advisor....it may be that other investments would be much more suitable...IRAs, pensions, duplex/triplex/fourplex near where you are living at the moment.

Good luck and keep us posted.

sambuc

- i'm guessing that the inlaws would not be paying you rent? Or if they were, not the market rent, or if not, because u would be buying 1/3 share for 1/4 the value or suchlike.



Thanks for everyones comments.

I am still so confused: I am not sure I understand the comment about buying 1/3 share for 1/4 the value????

If we have it written into the deeds and legally written up that we own a 1/3 of the property, and agreed by all parties, is this not a good investment??

Over the years, property has been one of the best investments you can put money into, especially in the UK.

If we help them out in other ways, ie., paying for holidays etc. This is dead money and we get no return on our money.

Manc

agreed.........however..........
baby boomers are about to start dying in the next 20 years or so.

a lot of baby boomers own 2 homes or more sometimes.

over the next 20 years expect a large influx of properties on the market.

and when supply is outstripping demand, the price will go down.