My parents had a house built in OK tha should be ready in Jan. They a got loan for $15k to get some extra things put in to the house. My parents got the house built thinking that they could sell the house they have in NY quickly enough so they could use that money to pay for the new house and have some extra money. It's the end of Nov and the house still hasn't sold. If they don't pay for the house by Jan they will lose the $15k they put down. My parents aren't rich so I don't want them to lose that money. Here is the question. Now we are planning on having me get a loan to buy the house in OK. Pay the mortgage until they can sell the house. Then I will sell them the house to them for what ever my loan was for. The house in OK is going to be $203k. The house in NY is for sale for $350k. Would the plan above be a good idea or would we lose money doing that. Or should we just lose the house in OK, sell the house in NY and lose the $15k and just have another one built later on.
2007-11-25 04:14:12 · 3 answers · asked by Johnny 2 in Business & Finance ➔ Renting & Real Estate
If your new house in OK is your dream house why not drop the selling price in NY and move in time ?
House prices are dropping in US due to the artificially high prices caused by low interest rates that are now higher.
Prices will drop until they are affordable, maybe by 50% because now the interest rates are double eg. min 5% not 2.5 % the costs are double, but wages are the same. As recession and stagflation bite hard, prices will fall more. the good news ? A lower US dollar will mean more competitiveness for US exports and then more jobs.
Selling the NY house would bring peace of mind, sell now as the price will only fall and if you borrow you must pay interest and maintenamce on two houses. IMHO.
Or rent the NY house to fund the borrowing, if you think you can sell it later on or if the rent could cover interest on the price you would get if you sold it now.
2007-11-25 04:39:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Have your parents look into applying for a "bridge loan". That will give them money to finish the OK house while they try to sell the NY house. Make sure they have a really good realtor to sell the NY house because the market is soft right now. Have them look up the estimate of the NY house's value on www.zillow.com to make sure it is priced to sell. They don't need to be stuck between two houses so price it right and they will be in OK in no time.
2007-11-25 12:56:05 · answer #2 · answered by bonniegreen 2 · 0⤊ 0⤋
There are an awful lot of uncertainties in this plan. You don't mention where you live. If you are in OK and will live in the OK house in the meantime, it could make sense - otherwise, it would probably be better to just lose the $15K and let it go, and have your parents build another house later.
2007-11-25 14:27:47 · answer #3 · answered by Judy 7 · 0⤊ 0⤋