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XBoxBoy
Participant[quote=rent4now]
As far as the tax base you are talking about…
Can you fill me in on that? I think what you are saying is there is a way to pay taxes based off what my in-laws pay instead of the higher rate I would be paying as if I was any random buyer?[/quote]That’s the gist of it. It’s my understanding that if you do an in family transfer, (ie from your inlaws to your spouse) of the title you can keep the tax base used to compute the property taxes. Depending on how much your inlaws paid for the place that could be a very substantial savings on future property taxes. I’m not an expert, so anyone who knows more about this correct me. But before you close escrow be sure to thoroughly investigate this.
Participant[quote=rent4now]
As far as the tax base you are talking about…
Can you fill me in on that? I think what you are saying is there is a way to pay taxes based off what my in-laws pay instead of the higher rate I would be paying as if I was any random buyer?[/quote]That’s the gist of it. It’s my understanding that if you do an in family transfer, (ie from your inlaws to your spouse) of the title you can keep the tax base used to compute the property taxes. Depending on how much your inlaws paid for the place that could be a very substantial savings on future property taxes. I’m not an expert, so anyone who knows more about this correct me. But before you close escrow be sure to thoroughly investigate this.
ParticipantAs much as you like your inlaws and get along with them, I would be very careful about having them carry the note. I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.
As Rich pointed out, there are inflation issues. But there are also issues in the event there is no inflation. What if interest rates were to drop even lower? How would you feel about going to your inlaws and telling them you want to refinance? By then they might be counting on the steady income from your mortgage payments.
Also, I’d be sure to understand the implications of the transfer of the title on tax base. I believe that you should be able to assume their tax base, which would be a very good thing, but I’d be sure to read all the rules to make sure that I didn’t miss something and fail to qualify for that tax base transfer.
ParticipantAs much as you like your inlaws and get along with them, I would be very careful about having them carry the note. I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.
As Rich pointed out, there are inflation issues. But there are also issues in the event there is no inflation. What if interest rates were to drop even lower? How would you feel about going to your inlaws and telling them you want to refinance? By then they might be counting on the steady income from your mortgage payments.
Also, I’d be sure to understand the implications of the transfer of the title on tax base. I believe that you should be able to assume their tax base, which would be a very good thing, but I’d be sure to read all the rules to make sure that I didn’t miss something and fail to qualify for that tax base transfer.
ParticipantAs much as you like your inlaws and get along with them, I would be very careful about having them carry the note. I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.
As Rich pointed out, there are inflation issues. But there are also issues in the event there is no inflation. What if interest rates were to drop even lower? How would you feel about going to your inlaws and telling them you want to refinance? By then they might be counting on the steady income from your mortgage payments.
Also, I’d be sure to understand the implications of the transfer of the title on tax base. I believe that you should be able to assume their tax base, which would be a very good thing, but I’d be sure to read all the rules to make sure that I didn’t miss something and fail to qualify for that tax base transfer.
ParticipantAs much as you like your inlaws and get along with them, I would be very careful about having them carry the note. I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.
As Rich pointed out, there are inflation issues. But there are also issues in the event there is no inflation. What if interest rates were to drop even lower? How would you feel about going to your inlaws and telling them you want to refinance? By then they might be counting on the steady income from your mortgage payments.
Also, I’d be sure to understand the implications of the transfer of the title on tax base. I believe that you should be able to assume their tax base, which would be a very good thing, but I’d be sure to read all the rules to make sure that I didn’t miss something and fail to qualify for that tax base transfer.
ParticipantAs much as you like your inlaws and get along with them, I would be very careful about having them carry the note. I’ve known of too many cases where “family help” ended up being “family involved in my affairs”. Given how low interest rates are, I’d go with a conventional loan through a bank. I’d be profusely grateful to my inlaws, but I would not tie my finances into theirs in any way.
As Rich pointed out, there are inflation issues. But there are also issues in the event there is no inflation. What if interest rates were to drop even lower? How would you feel about going to your inlaws and telling them you want to refinance? By then they might be counting on the steady income from your mortgage payments.
Also, I’d be sure to understand the implications of the transfer of the title on tax base. I believe that you should be able to assume their tax base, which would be a very good thing, but I’d be sure to read all the rules to make sure that I didn’t miss something and fail to qualify for that tax base transfer.
ParticipantI don’t know, I can see some major differences.
If you tire of your house you can probably sell it. Depending on how long ago you purchased it you might even make a tidy profit. Never heard of anyone who was able to sell their wife for the same profit.
After owning a house for twenty years, socially it’s perfectly acceptable to trade up to a nice new model. On the other hand, if you trade your wife for a nice new model after twenty years at least half he population will look at you with daggers in their eyes.
ParticipantI don’t know, I can see some major differences.
If you tire of your house you can probably sell it. Depending on how long ago you purchased it you might even make a tidy profit. Never heard of anyone who was able to sell their wife for the same profit.
After owning a house for twenty years, socially it’s perfectly acceptable to trade up to a nice new model. On the other hand, if you trade your wife for a nice new model after twenty years at least half he population will look at you with daggers in their eyes.
ParticipantI don’t know, I can see some major differences.
If you tire of your house you can probably sell it. Depending on how long ago you purchased it you might even make a tidy profit. Never heard of anyone who was able to sell their wife for the same profit.
After owning a house for twenty years, socially it’s perfectly acceptable to trade up to a nice new model. On the other hand, if you trade your wife for a nice new model after twenty years at least half he population will look at you with daggers in their eyes.
ParticipantI don’t know, I can see some major differences.
If you tire of your house you can probably sell it. Depending on how long ago you purchased it you might even make a tidy profit. Never heard of anyone who was able to sell their wife for the same profit.
After owning a house for twenty years, socially it’s perfectly acceptable to trade up to a nice new model. On the other hand, if you trade your wife for a nice new model after twenty years at least half he population will look at you with daggers in their eyes.
ParticipantI don’t know, I can see some major differences.
If you tire of your house you can probably sell it. Depending on how long ago you purchased it you might even make a tidy profit. Never heard of anyone who was able to sell their wife for the same profit.
After owning a house for twenty years, socially it’s perfectly acceptable to trade up to a nice new model. On the other hand, if you trade your wife for a nice new model after twenty years at least half he population will look at you with daggers in their eyes.
Participant[quote=DataAgent]Yes. I have a fairly large position in JNK (a junk bond etf). It’s current yield is around 9%.[/quote]
So I’m curious about this. As an ETF does it pay dividends? Or when you say its yield are you referring to the change in price of the shares in the ETF? If you’re talking about change in price giving you a current yield of 9% what time frame are you using?
Thanks,
XBoxBoy
Participant[quote=DataAgent]Yes. I have a fairly large position in JNK (a junk bond etf). It’s current yield is around 9%.[/quote]
So I’m curious about this. As an ETF does it pay dividends? Or when you say its yield are you referring to the change in price of the shares in the ETF? If you’re talking about change in price giving you a current yield of 9% what time frame are you using?
Thanks,
XBoxBoy
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