New answers tagged

3

The best way to look at it: Imagine it wasn't your sister buying the house, but a total stranger. So some stranger takes $80k of their own money and an $88k mortgage to buy a house, then they rent it for $1000 a month to your mother. Since your mother doesn't have that money, she pays $500 a month, and your sister and you pay $250 each. Would you agree to ...


2

The bottom line is there is no "fair" in this case. You are not obligated to contribute to your mother's living expenses or is your sister. However, either one of you may choose to do so out of the goodness of your hearts. Depending upon the actual age of your "aging" mother a home may not be a good idea. It may be a very short lived ...


5

I strongly recommend that your parents not create a transfer-on-death deed without talking to a lawyer about the matter because there are financial and tax issues other than the size of the estate and the cost of probate to be considered. For example, when real estate passes to beneficiaries through a will, the beneficiaries get to have a basis equal to the ...


2

Your sister is taking on more risk so it makes sense that she get a more substantial share of the gain. There are a lot of other questions to ask. Who is paying for repairs/insurance/new appliances/etc? There are also contributions that aren't financial (time/energy for DIY repairs or effort in dealing with contractors/shopping for new appliances, etc). When ...


8

She would like for my mother to pay her $500/month (as a tenant) That is the key. has asked me to contribute $250/month since she is the one "taking the risk" of owning the property What she is really saying (whether she knows it or not) is that she wants her mother to rent the house for $1000/month, and for you and your sister to pay half of ...


2

I believe the beneficiary deed transfers the real estate out of the probate process. By doing so, the probate process may be simplified for small estates. I have recorded such a deed for my house. Deeds.com has a web page:Colorado Beneficiary Deed Form which reinforces the idea that the property is outside the estate. Just like POD designations on bank ...


2

Estimating the value of homes is already a finely tuned science As you probably know, there are home-buyer sites where you can input almost any address, and it will tell you the present value of that home, even though it hasn't been on the market in 20 years, based on sale prices of neighboring homes, features (bedrooms, bathrooms, square feet) etc. So what ...


4

If you look at your county/city property records you may find cases where the sales record notes that the sale price isn't to be used for appraisal purposes. This is because it was done to add or remove somebody from the ownership due to marriage, divorce, or death. Usually the price in those cases it is noted as a value of $0. The record can also show ...


11

No. Only sales at fair market value in a bona fide arms' length sale can set the assessed price for property tax purposes. Even were this not the case, there's a general rule that a maneuver whose sole purpose is to reduce taxes and has no legitimate economic purpose or impact is treated as if it did not happen.


6

There is unlikely to be a long-term difference in price appreciation, for the following reason. Imagine two otherwise comparable houses, one with an HOA and one without. (The same argument applies to any other stable feature, say one with a pool and one without.) If the houses are currently the same price, and if house A appreciates say 2% per year more than ...


5

Research HOAs might in some situations increase property value, but research suggests properties without HOAs increase in value more. Here's an article that summarizes one such study. Here are some highlights: HOAs tend to have lower returns than non-HOA properties, regardless of fees. HOAs with fees are expected to increase property values slower than HOAs ...


5

It's difficult to find that sort of comparison data because neighborhoods generally have more differences than just the presence or absence of an HOA. For example, I live in an HOA neighborhood. I'm a couple of miles outside city limits in an "unincorporated" part of the county, and the HOA exists to replace the city services that we don't have ...


3

The average cost is more than $300 per month Source Cool, so a $100k mortgage for 30 years at 4% is $477/month. $777/month with HOA. For $300 more per month why not just get into a nicer house to begin with?!?! A $160k mortgage would be $764/month. I am willing to bet that the $160k house is going to be worth more than the $100k HOA house by the time you ...


1

Often when you borrow money the lender requires you to pledge some asset that they can seize if you don't repay the loan. Naturally, the lender wants to make sure that you can't sell the asset without repaying them, so they want some sort of publicly available documentation that the asset is encumbered. So, for example, when you take out a car loan, the ...


13

What is the purpose of you buying this home? If price appreciation is the only goal then the key is to make money on the buy. What home in your area is currently undervalued that will be higher valued later? HOA or non-HOA has nothing to do with that question. If the purpose is to buy a home, and rent rooms to supplement your income then you need either a ...


27

I doubt there is good data on the topic because HOA's vary wildly in terms of what services they provide and what restrictions they impose on homeowners. Regardless of what happens on average, you need to evaluate on a neighborhood by neighborhood basis. The notion that HOA's can help property values is often attributed to the idea that they can force a ...


2

If it is how come there are stuff called land loans? Since mortgages on home are much more common, it's typically inferred that a "mortgage" means a loan on a house (or possibly on a multi-family structure or other type of building). The reason that "land loans" are specified may be because the conditions of such a mortgage are very ...


1

To add to mhoran's answer - The agreement you signed to get the mortgage shows your obligation. It's typical to see that the "owner occupied" requirement is for a one year term. There are those who buy a house in need of repairs, move in, renovate every weekend, and after a year, buy a new place to do the same and rent out the prior one. The key is ...


3

Penalties for occupancy fraud can be severe. Yes, in any occupancy fraud case, there will be an element of intent - did you knowingly defraud the bank by misrepresenting the intended occupancy status, or was this a genuine change of plans that could not have been predicted? If you come up with a very good fraud scheme, the bank may have a hard time proving ...


6

Yes, there are statistics, although perhaps not exactly what you are looking for. It's not possible to produce accurate data that says "Person X bought House Y for Price Z and intended to live in it as their primary house / have it as a secondary home for themselves or their family / rent it out / leave it standing empty" because you don't have to ...


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