What would you do: - Posted by Aaron330i

import · March 13, 2002, 9:12pm

Posted by Bill on March 16, 2002 at 06:27:16:

If you put 20 percent down, just make sure that you actually put the remaining money to work at a good rate, and not in a bank making 3 percent interest. If his income is low and he can’t use the deduction, why not either buy it yourself and rent it back to him, thus getting the deduction for yourself, or go in as partners with him. (PACTrust or regular) that way he puts up the small downpayment and you get the tax benefits). Also,keep in mind , if he is older and may ever face nursing home posssibility, talk to a elder specialist type lawyer as to asset protection. There’s nothing like giving all you ever made to a nursing home. Taking the property in your name or in a trust now could save you hundereds of thousands in the future.
good luck.
Bill

import · March 13, 2002, 9:12pm

Posted by Aaron330i on March 13, 2002 at 22:12:26:

My father will be moving to Texas to a house 4 doors down. The value of his current house is 100K and the new house will cost 165K, which my wife and I will subsidize.

The question is would it be better to place the entire amount of cash he gets from his old house towards the new house or put only 20% down and put the remaining amount of money to work.

Also, since his income is so low, he would see no benefit in a mortgage interest deduction.

What are some alternate and creative strategies that could be employed here?