My daughter has a similar problem faced by this lady, whose mother left her the family home.
I will leave my daughter my house in my will. But she has a physical disability that affects her head and ability to work full time, so her income is limited.
She lives in an apartment close to her work and does not want to move in with me.
My house is worth $450,000, with a loan balance of $248,000, which I had recently refinanced at a mortgage rate of 3.35%.
I suggest that he rent the house when it ends up in his hands. She can get an income of around $2,800, and since the mortgage is just under $1,600 a month, that gives her some extra income. And if she does, that extra money will almost entirely pay her rent.
His other option is to sell and take about $200,000 out of the house.
So my question is, should she sell or should she rent?
I am doing my best
‘The big move‘ is a CNET column examining the ins and outs of real estate, from navigating the hunt for a new home to applying for a mortgage.
Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at TheBigMove@Crumpe.com.
Dear Try,
Ask her to rent this house if you die before her. Don’t recommend him to sell it just yet.
But start working with her now so she can find her footing as an owner, if and/or when that happens. Together you can see the best ways to find tenants, how to set up rent payments, and how to care for and maintain the home.
If they are unable to take on this responsibility, you can seek out a property management company that can help you for a fee. A property management company usually takes around 8% to 12% of the monthly rate as a fee.
I like that she has some rent money left over if she rents. This will increase his income, give him more financial stability, and help him put money aside for emergencies.
Many people in America who rent dream of owning their own home, so you helped set it up for a successful and secure retirement. Plus, that 3.35% mortgage interest rate was a snag. She would be lucky to see that again soon.
I don’t know what medical issues she has and what other financial needs she might have in the medium to long term, but if there isn’t an immediate and urgent need to tap into that $200,000, why go that route ?
I truly appreciate all you have done – and what you are leaving behind – for your daughter. It’s nice of you to give your daughter a financial boost by lending her your house.
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