Dear all, i am in a dilemma, would appreciate if u can advise
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My parents are considering refinancing their rental property and transferring the loan responsibilities to me. The property generates rental income, which means I would only need to contribute around $1,000 per month towards the loan installment. However, in the event that the investment property is sold, any profits would be retained by them. (Perhaps they might provide me with a nominal amount.)
Honestly, I am reluctant to proceed with this arrangement as it hinder my plans of acquiring a property together with my significant other. Nonetheless, I am also aware that this could alleviate some of the financial burden on my parents.
Here are what netizens think:
- They should just sell if they cannot afford, since it is for rental. When it comes to money, the boundaries need to be clear to avoid future disputes.
- Just discuss with them on giving them more allowance instead of taking on the ownership or placing the loan in your name. Maybe work on a compromise, $500-$800 a month, whatever you can afford. They can then use the money to pay for whatever loan there is. Tell them you do not want the ownership as it affects your buyer stamp duty. Win-win.
- Why are they transferring it to you now? Do they have issues repaying the loan? You don’t have any commitment now, so 1k a month sounds easy, but what about 5, 10 years down the road? That 1k may not look like a small sum when you have your own place and family. Without knowing more, I’ll say don’t. They can’t even repay it in their time what makes you think you can shoulder theirs and your own?
- It will screw u royally big time on loans for your own home and eligibility for all sorts of grants and give outs. So dont.
- Lmao dont take other peoples loan responsibilities. Thats like…. personal finance 101
- They’re worried that if you sell, your other half might be eyeing it or even you might be splurging the cash. Assuming you don’t sell, $1k/mth is relatively cheap for a private property which may end up being yours. Do it if the property is in a nice location and the size is right. Just ask them what if you end up staying there till you’re old or they kick the bucket early. From there, you can understand their real intention.