Hi,
I am looking at buying a house but I am having diffucility with morgage funding due to negative equity and issues selling my current home. An option is to keep my existing home and rent it and buy the new house with with my father as a co-owner. We would both put approx 40K into buying the new house with the remainder on a joint mortgage.
However we need to understand the tax implications. I would pay all monthy mortgage repayments. Would my father be liable for income taxes, etc. Also the idea would be in 5 years time to buy out my father by taking over the mortgage and repaying him the 40K. Are there any issues in doing this assuming an increase in the property value in 5 years.
Am grateful for all advice. Thank you.
I am looking at buying a house but I am having diffucility with morgage funding due to negative equity and issues selling my current home. An option is to keep my existing home and rent it and buy the new house with with my father as a co-owner. We would both put approx 40K into buying the new house with the remainder on a joint mortgage.
However we need to understand the tax implications. I would pay all monthy mortgage repayments. Would my father be liable for income taxes, etc. Also the idea would be in 5 years time to buy out my father by taking over the mortgage and repaying him the 40K. Are there any issues in doing this assuming an increase in the property value in 5 years.
Am grateful for all advice. Thank you.