I Own a Home with My Brother and It's a Mess
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- Опубликовано: 6 окт 2024
- I Own a Home with My Brother and It's a Mess
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Ummmm...This house is NOT a gift🙃.
Your parents simply bought a house THAT you and your brother are paying for.🤦🏽♀️
This is one of the worst phone calls ever. Stupid premise.
@@inthevault9603 It's titled "I own a home with my brother" but it sounds like they just share a mortgage.
I agree that it is not a gift, if you are paying for it. If you want to stay there, one option is to just continue making payments on the house as usual. With any extra money you have, you could continue on with the Baby Steps, putting money in a savings account, a retirement account, or a mutual fund.
You still pay less then you would have renting and now you own half a property and the equity from it. Parents paid the down payment and got them a mortgage when they didn’t make enough or have enough credit. It’s a leg up
Rent out your side, use the rent to pay your parents, buy your new house.
You can rent that duplex for more than what you pay in mortgage.
Good in theory, but I would guess the taxation would be difficult. Imagine the depreciation- who would get it? Who would pay taxes? Parent or child? Unless you are talking about an illegal cash only rental? Parents could rent it out and daughter can just give up her share.
@@betruetoyourself7162 agree, but she might not want to do that, as she has already paid towards the house. doubt her parents would return the money, as in buying it back from her since it was a gift to begin with. complicated stuff.
Ang r yes, I wouldn’t want to have anything to do with it. Siblings or relatives shouldn’t split homes. Watched many families destroy themselves arguing about it. It is really sad to watch 😢
There is no hot area in New Orleans. Whole city is a dump
I was about to type the same thing
How is this house a gift if you're paying a mortgage on it? Why are we not talking about the equity in this duplex and the balance owed on it?
That’s what I couldn’t figure out.
Cause it doesn't matter. It was a bad idea and they need to get out. So they talked about a few different ways of going about it. The gift part was the down pmt.
This is what i would call, a unwanted gift that came with unwanted expenses and problems.
Because the parents have borrowed against the equity
My inlaws sold me a house that they thought was gift. We paid market value for the house so not a gift. We ended up with over a 100k of repairs after it passed inspections. We sold and most 60k in appreciation. It was awful, I don't want to own another home again.
Never accept a liability as a gift. Only PAID IN FULL assets.
@@devilsadvocate7059 Assuming they couldn't get approved and didnt provide a down payment, then yes still a gift in that sense
@@jakeleisure8326 I see what you're saying, it's just a gift with strings attached which happen to be money with interest. So maybe a bad gift but still a gift I guess.
I think the gift was in giving their children stability while they figured out what they wanted to do with their lives. Their parents essentially gave them something to build on & it seems as if only the daughter got the memo that it was a stepping stone to grow up & have something to be able to sell or rent out once they were grown.
You could put that in a book of quotes
The parents own your home , they own you
The relationship is different when somebody owes you money. Crazy how true that is..
Family money business is not good. If it’s a gift, it’s a gift
It so true.👍🏽
It depends on how the family/family member deals with it sad when family can't deal with money
🥃.....True..
100%
“Every time you borrow money, you're robbing your future self.”
--Nathan W. Morris
There are many successful businesses that have had to borrow money at some time during their existence.
There is no guarantee of success in US business (every day is a gamble).
Bezos must be robbing himself then?
What you say is worth thinking about but it isn't always true. A loan could be a way to make your future self richer. In countries where university is affordable, a loan to pay for education (assuming the degree is marketable) will allow your future self to earn a better salary.
Profound!
Borrowing for consumption will make you poor. Borrowing for production may make you rich.
My husband owned a home with his sister and was talked into signing the house over prior to our marriage under the guise of "it would just complicate things" and you will get your money later. Almost 9 years later, she sold the home, pocketed the whole sale. My in laws never interjected in our favor. That's 6 years or so of mortgage payments and a 25k down payment he never saw back. We have owned our home for 7 years now, are happily married but no longer speak to any of his family. Family and money don't mix. Once someone steals from you, the fact that they are family only makes things worse not better.
😮
Imagine lending money to your children with interest to make yourself money. wow
Right?!
Your parents offer you 2% the bank offers 5% which offer you gonna take.
jonymanay I agree. I would take the 2% all day. On the parents side, I can see why they would do it too. It is a win win except if anything goes wrong.....like now.
@@jonymanay id rather not get saddled to a location with my brother on a duplex i didnt want
@@jonymanay bro that offer shouldn't even have been made in the first place. It's just so wrong. A loan at 0% from the parents or outright paying for half of the mortgage would have made more sense. Yikes parents.
"Blood and business don't mix."
Nice quote! I totally agree!
That's not necessarily true.
There are many family businesses that have been very successful.
It probably has more to do with the family members involved.
@@steelcastle5616 Walmart
@@steelcastle5616 Business might be successful. But we don't know about the turmoil and dysfunction as a result of family members working together.
That’s not true, they can mix because business can sometimes lead to blood. Bad business ventures may lead to war, fights, and further bloodshed.
It seems like the parents tried to set this lady up to be saddled with mothering her older brother, because they know that he is irresponsible. They aren’t considering the situation from the viewpoint of her new family unit.
Mimi N Yep, the parents don’t want the son to move back home if they sell the duplex
how did you know he's irresponsible just from this?
grod805 she literally said even before she got married she was mothering him even though he is older.
@@dollparts7506 that's her point of view. Nothing she said made it seem like he was irredeemable
@@grod805 you weren't listening. She said she does ALL the work
Owning a home is a huge commitment and going into it with friends or family can get complicated easily if intentions become unclear over the years. This is a tough situation.
i had this happen to me when my parents got me to become partners with them for a house. they were far more powerful financially. but they were such bullies when it came to paying my half. but when it came to sharing all expenses they would back out because their downpay was more. and they decide to move, we are stuck with the hassle of cleaning, and closing. and they rip us off on the profit.
It was purchased with funds from a trust set up for them? Are they repaying their trust? The whole thing is weird
Agreed. The facts she provided make no sense.
Yes. Parents shouldn't give any house to their kids except in a will! The Trust may have been exhausted or they paid closing costs and the kids are literally paying a mortgage!
I imagine the parents' financial planner talked them into using their own kids to create tax advantages for themselves.
This "gift" has little benefit to the kids but numerous benefits for the parents.
thats right sounds illegal
Yep, I agree on it being weird. Unfortunately, I don't think the parents were that well-intentioned. I feel like it's a little bit of control mum and dad can have over the kids. Maybe, I am just too cynical.
I would NEVER do business with my family. I like to keep business business and personal life separate 😄🙃
@Lisa B Please tell me the story!!
My dad wants me to chip in for a real estate property because my parents don’t have enough money... boy after I saw their bank accounts I want to move out ASAP
Money does terrible things to good people. Just pretend you're poor!!!! No one can ask you for money if they think you don't have it!
Know Nonsense Great Point! Words to Live By!!!
Know Nonsense, nobody in this video is talking about anyone asking for money. It's a shared obligation on a mortgage. Period.
Can I borrow 5k...
Why not rent out her side and keep on going???
I thought the same thing. Rent it for a little more and keep the profit.
Great idea rent out you side and buy another one ☝️
Catherine Tsitlakidis n
@@sophia4christ what?
She doesn’t own it. She cannot rent it.
I thought by the title the brother lived with the sister and he is messy. 😂
It’s now the lady calling from yesterday’s video “I’m living in my sister’s basement.”
I'd definitely rent it out & use that income on my new mortgage with my hubby. It's a win win. Brother gets to stay, sister & hubby get their privacy, parents still get their interest & sit on it until property values are so high that her brother wants to sell. That way everything is still evenly split & no feelings are hurt or relationships further damaged.
Renting to family is rarely a win-win
One of the reasons a landlord makes money is through offsetting rental income against depreciation and other expenses. If she does have a contract with her parents to buy her half, then she would have to pay landlord insurance and property taxes and all other ownership costs to lower the rental income. If not her taxes on the rental income federal maybe 22%. It might not be a good cash flow for her family. The parents can rent out the place instead and just give her a handout.
My aunt and uncle sold their house and bought a larger home to share with one of their daughters (plus her husband and 2 kids) Well the other daughter wanted in (plus her own husband and kids) and they ALL moved in together. That lasted about 2 months 🤣 and now one of the daughters is no longer speaking to her family 😕 My aunt and uncle had good intentions I’m sure, but it’s just a bad idea all around.
I think that could only work if there were few of any shared spaces. Everyone would need a living room, kitchen, bathroom etc. better to buy individual houses on the same road.
Sky Silver imagine when the foundation or roof needs work! It would almost always be a bad idea
Be True To Yourself everything would have to be agreed on in a contract beforehand for sure. I think it could only be a good idea if each family within the house really needed the financial help. Living together for fun or something could very well ruin the relationship. I’ve read that living in the same TOWN as family can break up a marriage. Nevermind one roof lol
Sky Silver I agree! I live in an area where it is common to have like 4-8 names on a mortgage. Some of my neighbors living with 15+ in a house. Sometimes you can hear them fighting and in a few years the house goes for sale. It is sad for them. One person should own the property and let the rest live there if they want to let them.
Sounds awful.
It is not clear who owns the duplex, the parents or the children, since the children are paying a 'mortgage" to the parents and not to a Mortgage Company.
It sounds like they are basically just renting their parents property.
Its in a family trust that she may have a 1/4 claim to, hopefully. If she divorces the husband cant touch that asset.
Financial boundaries within the family can be complicated. This is one such case. People also have different Financial values and this wasn't well thought out
Literally 90% of these videos are communication problems
Dave: so you own a duplex with your brother, do you live in it? Does your brother live in it? So your brother lives in a duplex? Does he live in the duplex that you both live in? Where does your brother live? Let me make sure I understand this, your brother lives in the other half of a duplex that you both live in? I’m confused
Totally agree with Dave. I never lend money to people. I gift it to them. If it’s more than I feel comfortable gifting , then I don’t do it. To this day I’ve never fallen out with a friend or family member over money.
I’ve been there! I had to sue my brother to get out of the deal. Luckily I won my case. I haven’t talked to my brother since I saw him in court. He burned me. So glad that’s over!
Was it worth it?
Trouble is, you may be done with the past, but the past may not be done with you.
Ralph Raphael Absolutely!
n rice Trust me, that part of my past is done!
Same situation but didn’t decide to go to court for it because of my ethical integrity. Sad thing is family is lost because of money or greed.
It's best not to make any deals with family or friends if you value them & don't ever want them out of your life.
I bought a house with my brother too and it ended up being a pretty big mistake.
My brother and sister in law bought a house together and it turned out great. Communication and Relationships is the hallmark of everything!
Colleen Jones u mean your brother and his wife ? Lol
Never buy with siblings and boy/girl friend. My work is property tax related and I’ve heard many messy situations from these homeowners every week.
Rent out your side of the duplex...
In 3.... 2.... 1....
Brother now wants to sell the whole duplex
She wants t the whole thing That's what's going on but brother will never let it happen
I don't understand the issue here. I've never seen duplexes that don't qualify as individual units. Why can't she just sell the side she lives in?
Because they share a wall some places sell duplexes as one unit. Some you tubers (GrahamStephen) advocate purchasing duplexes because banks in California consider them residential loans. Live in one and rent out the other. I think it is just messy because parents are acting like a bank and sold it to a partnership of brother and sister, which creates messy drama
Because it's not hers. You can't sell something that isn't yours.
When you bring a 3rd party opinion into your marriage you will always end up disappointed.
With maturity and life experiences humans either learn from their mistakes or repeat the behavior.
She doesnt own the home. Just walk away from. Look at it like you were renting for those years.
Great explanation. I’d feel much better, if I was in such situation and heard this .
If the parents paid cash, why is she saying there’s a mortgage with interest? I iz confuzed
The parents financed the sale of the house to the kids, that way if one of the two couldn’t pay etc, the parents and not the bank would accelerate the loan, or in the case of the parents maybe they let it slide.
Paying them back
It’s a messy agreement. Essentially the parents are the bank. And sold it equally to two partners brother and sister. Now if there are any roofing or structural issues brother and sister need to decide who will pay and how much each. Mom and dad help one child in one emergency repair, the other will feel upset. This is perfect for creating family drama
This girl smh.. Rent out your half go buy another house
It always strikes me as somewhat odd when people say they "own" a house but have a massive mortgage and virtually no equity.
I co-owned a cottage home with my former in-laws. It was a huge mistake. My in-laws wanted the house to look and be used a "certain way" and I did not. The problem is that we each got one vote and I was ALWAYS outvoted 3 to 1. It was not structured to be set up for very selling it. They wanted it to stay in the family as a family cottage forever. They let all th other family members come and use it for free and we pay for half and I take care of it...lots of resentment...I would NEVER recommend this or do this again.
I highly doubt she is going to sell. You can hear it in her response when Dave recommended it.
"Problems that remain persistently insoluble should always be suspected as questions asked in the wrong way."
--Alan Watts
Derp
- Derp guy
Dave's translation: I own a howm with ma bruther and it's a MAYUSS.
Man im turning 25 and i wish Dave was my dad. My dad died left me nothing
My mom wasnt able to help me afford school I could never imagine working and paying for school my self while actualy studying
I never believed in debt
At least i have no debt gotta get my income up some how budget well
Fund my Roth and slow and steady ill do something
I'm sorry for your loss... I'm 28. My dad waa around but never worked a day in his life. My mom slaved day in day out to make ends meet. I have a CDL out here in NYC. I earn a good wage. Plan to start college in the fall or spring the latest to be a R.N. It's gonna be hard since I'll be paying my way through. Point is, it's never too late!! You can make it happen and you're 25. Youth is on your side and that's something money can't buy. I moved to NYC 8 years ago and took the first job I could find making $7.65 an hour. I'm doing significantly better now and you will be too! My best advice is if you're gonna go the college route do it NOW. I said I'd start college 7 years ago. Could have been done by now making 6 figures had I done that and just sacrificed a bit more. You got this!!
Sorry for your loss, my dad and mom didn't leave me anything either. Trust me, you can do everything you want without a trust.
Also- if you don't earn too much the government will help you a lot to get through school. You qualify for a bunch of incentives!! You'll end up paying a fraction of the cost. Do community college first, get good grades, then transfer out for your BA.
@@RAFatturi I agree, my mom only left me with 7k only in saving. But, I was young, I used that money to paid for college, lead some to my family member who promised to give me back the money. They, never did. So, I work hard to get my degrees by working and going to school. I'm almost done with my Bachelor degree also going to be debt free as well. Yes, you can do anything.
25 is very young but make a plan now. Try to contact Dave, he’ll connect you with someone who can help further. It’s incredibly important to have someone who has more years of wisdom and can lead you in the correct direction. It would take you a lot of time to learn on your own and then you would be wishing, you knew/done things earlier.
My brother is in my rental. It works out. I charge him significantly less than market...... But I agree with this advice. I don't like having to talk rent with him, even though he always pays on time.
I think it just depends, if you have honest siblings, and your relationship is good, it works well.
Kay My dentist had a brother who was her best friend too, for 40 years, then asked her to co-sign on a high amount loan for him, took the money and disappeared abroad. Seemed honest and trustworthy for all those 40 years. It’s so sad, you really never know.
Just wondering if you are not renting it for fair market value, aren’t you worried about an audit?
US is so weird, lol. My parents managed to give me $400.000 worth house while making less than $30,000 in year. I do not have to pay them back btw. Wish you luck.
Thank you for sharing!
I was in a very similar situation. Litterally owened a duplex with my brother. And he loved on the other side. Me and him were polar opposites and eventually butted heads too much. I wanted to make something happen with the place and make it an investment property. But eventually we sold it. And got a decent amount for it. Used a chunk for a down payment in a new home and finally got out of the situation.
Strong contracts are needed amongst family and I didn’t have one. I sold my half of a duplex to my sister and we haven’t talked in close to a year because of resentment. The negotiations were a mess.
My husband owned a 4-plex with his brother. The brother held the checkbook, my husband did all the repairs. Bad deal. The brother died, and now my husband is partners with the wife. Now SHE holds the checkbook, and my husband does the repairs. Even worse deal.
Never mix family, friends, and business....
I live with my brother too. My parents own the house and they are paying for the house until we want to find other places to move to. We knew that this is a gift for someone in college and just started careers. It save a lot of money. But we knew this is not the house we want to live in. We talked to my parents and my brother and we all agreed that it is best to sell it in the future. If you have financial ties with your family members talk about it or make an agreement, in words or letters.
I would save and buy my own house. Put renters on my side of the house.That's not really a gift. It's a nice gesture but you don't own that house. The parents do.
My mom wanted me and my brother on her mortgage for if she passes away. But my brother told me already when that happens he refuses to ever sell the house. My mom has said the same thing, that she wants her house to be there of anyone wants a place to stay, like for helping family in need. My brother lives with my mom currently. I told them to just take my name off of it and I don't want the house. Shame to be letting go my share of something worth so much but can't see this not getting messy later
Sounds like your parents really wanted both of you out of their house 😂
A gift you have to pay back with interest? I'm not sure they know the definition of a gift 🤣
Rent your side to pay the mortgage, buy new house, maintain 50% equity in the duplex until Brother is ready to sell.
Here brother is listening in, thinking how am I going to get my sister out of this deal.
I am in this situation and honestly, it's stressful. Unfortunately I have student loans to pay off until I get to save up for my own house. I just started my another job and I am expecting to pay off by the end of this year.
I’m hoping the people here could offer some insight- I started a side business selling bath products on Etsy in order to help save for grad school and/or paying off debt. It’s been open for a year and I absolutely love it but it is not at all profitable yet. Thankfully I didn’t go into debt to pay for it, I work full-time and used cash for the supplies and fees. But at what point do I give up a donating my cash to a business that isn’t profitable? It’s gaining followers steadily and I have repeat customers but just not enough of them yet. I believe it has potential, it’s just slow going.
well most business start off at a lost, you have to invest before seeing a return. I'm sure if you are consistent, you will see consistent growth, to a point were it can be profitable. its up to you, to continue taking the time effort and money with it. hopefully it goes well for you.
You have to make sure that it's a money-making business to begin with. I've also invested in a business without losing money and made some too but after awhile I realized I'm putting in a ridiculous amount of time and have to keep on buying new gear and at the end of the day I make too little money. I'm glad I gave it up and have never looked back.
So make sure that it's worth the investing and time and labor for the money you are getting.
Try diversifying your selling platform; eBay, Facebook Marketplace, Mercari, Poshmark, etc. Could just be your product is part of an over saturated market too.
Alex, let them listen to this call, it’ll be the best way to get your parents and brother on board with getting your mess straightened out.
I agree, a hot mess. I am going through a similar situation.
Sell the house and go your own ways.
First , make sure your parents are not on the title and you & your brother are just renters.
Right on point Dave! 💯
What about renting your half out when you are ready to move?
Great idea
Why don’t you rent your side???
NEVER own property with family. This is just one of the reasons why.
Agree, business with family could be bad.
For me is been a blessing, my dad sold me a property that I'm paying him for, the title is on my husband name so we sold it, the people that bought the property are paying us, from the money we pay my dad and a place to live.
In a few years they will have to do a balloon payment for the rest of the money due and we will pay my dad and make money on it.
The key is getting everything legally on paper.
Cant your brother buy you out and rent out your side?
This always causes problems when 2 or more parties within the same family have a financial interest in a single property. The most common cause of this is when a parent dies and leaves the property to be split between there children however this is a more delicate situation as you both live there.
There are only 2 possible outcomes:
- buy the brother out.
- force the sale of the property.
The problem is he may really like where he lives and not want to sell even if the property values have gone up so you need to be ready to have a very unpleasant conversation.
Consummating the marriage must have been awkward!
It's a duplex not a single room barn
Bet they didn’t carpool that day lol
K N
They share a wall. Hopefully it's not the master bedroom against that wall. Generally they're a mirror image of each other. So a little loud and the brother on the other side could hear you.
The parents didn't buy it with trust money. They got a mortgage. The caller does not co-own anything with her brother. There is obviously an agreement, written or not, between the caller and her parents to pay half the mortgage. I would go back to my parents and negotiate a different deal to get out of it.
Her parents bought an investment property and had their children enter into a rent to own arrangement by splitting the mortgage. They just didn’t create a contract to cover the what if situations that occur as their life situations change over time.
No phukn way! I would never do anything involving money with ANY of my corrupt family 😆.
consider the payment of mortgage as rent, give 30 day notice, move out lesson learned
Time to form an exit strategy!
Anything can be documented. Contracts exist. If the brother is resistant to any discussion of tracking equity (forget the parents), the worst case is to force a sale in court, but it's possible.
get a lawyer
Think of it as you have been paying rent not a mortgage, and buy your own house. Your parents can rent out your half and get the money from the tenants. You will lose the equity, but it is a small price to pay for your freedom.
"You can just leave"...people are forgetting the part where she emphasizes that this is hot property in a hot area. Its a lucrative investment.
Thembelani but unless there is a contract in place, it is not her house. It is her parents house. And she can leave anytime. It doesn’t sound like there is a written agreement. If there was a rent to own agreement, it normally would say you can walk away from this without penalty and the house would still be in the parent’s name. Doesn’t sound like she had much invested except for rent.
That’s why I don’t agree with Dave telling her to sell it. I would see is my parents would allow me to find a renter and charge more than what I was paying them. She could save the amount in case one day she wants to buy out her brother.
How is it a gift and you have to pay it back🤔🤔
They are not really stuck. They can rent out her side and charge the new renters more than what she was probably paying. I don't see how they would want to sell it. If they are simply paying the mortgage (principle plus interest), they are already ahead because renting from another person would be so much more.
How many assets have NO COUNTER PARTY RISK?
Physical Silver is wealth insurance.
I don't see any problem here. Since the house was bought for cash by your parents and you owe the money to them, you should tell your parents to split the mortgage and you pay up your portion as fast as you can while your brother continues pay his portion at his own pace. What I think is that this lady and her husband want to have their own thing and she's more than willing to throw her brother out. Her brother is not a bum, she's being selfish
It sounds like it’s her parents house not hers.
I don’t owe money, I just don’t feel home.
My brother and I looked for a house together just to not work out cause his fiance wanted something different. Smh.
Why didn’t the parents have a lawyer legitimately write an owner finance deal with their kids on the deed and the trust the lien holder? Makes no sense why the kids actually think they have any legal right to this property when they are basically renting and not even doing that with a proper aggreeement
Why are so many people commenting to rent it out. If the caller doesn’t own it, I don’t see how she could? Maybe some kind of sublease agreement would work, but accounting for the business looks like a nightmare.
If you want to keep it, restructure -- separate the two properties. Why can the duplex be separated into two units? Buy it from your parents. Why not deal directly with parents?
In some counties, each parcel of land cannot be subdivided. The siblings can be partners in ownership. But in my county they can’t split the property and record it legally. Or if they can, it is expensive because most plots are labeled (residential/commercial/farming). They would need to receive community support and rezoning.
@@betruetoyourself7162 Where I live all duplexes are sold separately (and they are pricey!)
As Dave says: The only ship that doesn’t float - a partnership.
She said the house was paid for, in cash, from a Trust the parents had set up for her and her brother. They are both paying the parents back, as if it were a mortgage, with interest! What?! The parents OWN the place, and the kids are paying them back, with interest. It sounds like the parents are using their kids’ monthly ‘rental’ payment to either rebuild the Trust or live off of, AND make a little bit of profit on the side (the so-called ‘mortgage’ interest on a non-existing mortgage). In addition, the parents are reaping the annual depreciation on the rental.
I wonder if the parents set this up to get the possibly irresponsible son out of their house and into something where his sister can step in and look out for him? The parents may have been well-intentioned, but the fact that they used the kids’ Trust money to do this, AND are profiting (holding the Title to the property, charging ‘rent’ and ‘mortgage interest’ and applying it against a non-existent mortgage, and taking the depreciation) is despicable. She may have been manipulated to be her brother’s keeper. It’s probably time to either move out and start a life with her husband away from her parents, or request the parents to file a Quit Claim Deeds (one for each side of the duplex) and retitle each side to each child, and then let the kids decide what they want to do with the property bought with their Trust money.
If you can't buy him out then find another renter to take over the responsibility or sale it or sale it to him.
Have him buy you out and he rents it out.
So are they not old enough to have access to the trust fund? Is that why they are paying it back with interest?
I hope one of the family members is keeping track on how much has been repaid.
To be fair they're in Louisiana, Alex's brother is actually her husband.
No one owns the home here. It is under a mortgage the bank owns it. When it is paid the deed will be in the parents name. The parents will have to transfer the home to their children. Ugh tough it out when paid rent your side and use that rent and your income to buy a bigger home.
She could just give up her share and turn it over to her parents/brother. Take the lose and learn the lesson. Just consider her past payments as rent and move on with her life! Who knows two years from now she might get divorced and need a place to live.
If I were the older brother I would be itching to own the duplex as a future investment property. If he lives frugally he may never have to work a regular job.
How much of her equity did the parents and the brother take? Why can't she sell her side? Isn't that how a duplex works?
Can it even be considered a gift? Do they even get the tax benefits? It sounds like their parents's FP thought up a good asset management scheme and decided their kids were the perfect dupes. Sell it or refinance to buy him out.
yamamancha I think the reduced interest is a gift or would count against lifetime gift amount.
@@betruetoyourself7162 Was there mention of a reduced interest rate? Their parents bought the house in cash but they require the kids to pay principal + interest. So not only are the kids paying payments + interest to their parents, they also don't qualify for the tax breaks associated with a taking out a home mortgage. I think the only "gift" (or kindness) come from enabling them to purchase a home in a booming area. However, this seems morally sketchy at best.
Having a friend/brother/sister living within a mile is OK. Sharing a wall... not so much.
Sell it but where does he go? Now he has to purchase a home on his own. He's single with one income to purchase a home. You're married and have two incomes, it's easy for you.
You could talk about renting out your half? he stays and you turn your half into a rental property.