Reply to Is there going to be a spring market this year?

Forum Index » Real Estate

Reply to "Is there going to be a spring market this year? "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Things have gotten ridiculously pricey in Arlington where we’re searching. We’re looking for a small condo for our just out of college kid up to 450K. We want a two bed so they can rent one room out if they want. It’s not looking too good so far[/quote]

We looked into this and decided not to pull the trigger. My thinking was that if I buy the condo now and gift it to them later, the IRS treats it as a lifetime gift, and they inherit my original purchase price as their tax basis. When they eventually sell, that lower basis can translate into a much larger capital-gains tax than if the condo had been bought in their own name at today’s price—or inherited with a step-up later.[/quote]

So what do you suggest? Our kid needs a place to live and we’d like to help them buy a place. Our home is big enough but since they’re deep into romantic relationships, they need to be in their own home😂. [/quote]
Ever heard of something called renting?[/quote]

Yes, I have, but we’re not going that route. [/quote]

I don’t think you’ve done the math of rent vs buy when it comes to a condo these days (it’s not like it used to be). If you buy them an Arlington condo in cash, it will barely appreciate over time and the HOA fees will rise, plus maintenance costs plus rare special assessments. Just put the $450k in an index fund and that will pay for rent and give them a much better investment.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics