shortyclarkeMember@shortyclarkeJoin Date: 2012Post Count: 1
Need advice, Have an elderly friend on the old age pension whom for personal and financial reasons has approached me asking if I can take over her mortgage. She purchased for $260k has lived in for 3 yrs and has managed to pay off $100k. Im currently residing at my inlaws and am interested in using the house as an investment, What are my options? How does this work?Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069DerekMember@derekJoin Date: 2004Post Count: 3,544
Some random thoughts early in the morning!
You will need to consider the purchase price she is asking.
What price are you prepared to pay?
Whether or not she has family who may have their noses out of joint if is is perceived that you have lowballed her.
Is she wanting to remain in the property? If so……………………….
Is she going to pay you rent?
If so what rate – given she is on a mortgage rental amount may be relatively low – there may be some government rental assistance subsidy to assist.
Her age, her health which all have a bearing on how long your arrangement will be in place.
You investment may be a long term one before you can do anything – are you hamstrung until she dies or chooses to move out.Property TraderParticipant@property-traderJoin Date: 2002Post Count: 111
From my experience I would suggest that because of the situation:
1.) I would first find out and completely understand why the person has approached in the first place.
2.) What pressure is upon them at the moment?
3.) How do you plan to resolve or help your friend out?
4.) What is she prepared to do or give away to make that happen (best price or terms)?
After obtaining the above information I would proceed to make the property transaction pretty clean cut and settle pretty quickly so that there are no future disputes with relatives’ etcetera over the property.
Well that’s my two cents worth. All the best on this property deal.
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