There is nothing wrong with giving back something to your parents. One big way some people give back is by getting their parents a house. However, nobody wants to have to pay high solicitor quotes.
Getting a house is more complicated than you might have realized, but there are ways to make it easier. Here are some of them:
Applying for a House Loan
Getting a mortgage for your parents can help them out, especially if they are nearing their golden years. However, getting a mortgage for other people can negatively affect the person’s credit history if the other person whose name is on the mortgage is not paying it on time. For this reason, some people find it hard to decide if they want to have a joint mortgage with other people or not.
Assist them with the Down Payment
A way to help them with their mortgage without putting your credit score at risk is by helping them with their down payment. Yet, unless you have a considerable amount of savings, then you might want to consider its effects on your financial status too. The money you will be using to provide them financial assistance with will no longer be available to you when you need it for your child’s college education or even for your own retirement.
Rent it Out to Your Parents
Another option that you might want to consider is to buy the house and then rent it out to your parents. By doing this, you will qualify for several tax deductions. Some of these tax deductions would include property taxes, depreciation expenses, the cost of maintenance, and mortgage interest. It does not have to be high. Getting enough funds to cover the taxes or the money that you used should be sufficient.