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URL:  http://boards.fool.com/would-it-make-more-sense-for-us-to-buy-the-house-30738498.aspx

Subject:  Re: Taxes and roommates Date:  6/18/2013  2:28 AM
Author:  ptheland Number:  118710 of 121219

Would it make more sense for us to buy the house with him and us on the deed and mortgage,

I would not do this.

He's still young and possibly not really ready to be a property owner. If he has some financial issues, those can affect you if you jointly own property.

Story time.

I have a client who wanted to help his kid get started in the rental property business. So he provided the down payment and he and his son jointly owned the house. The problem is they bought a house in Phoenix, AZ. In 2006.

The story ends with a foreclosure, and both dad and son's credit trashed. For dad, that's not a huge issue. He's fairly well off and can easily live without credit for a few years. But now his son can't finance a car - well, not at anything approaching a civilized rate. And he can't buy a home. (Not that he want to now that he's been burned badly in the real estate market.)

In short, my completely unsolicited advice is to stop trying to get the kid tied down into some real estate. Let him rent some place to live until he is ready. And let him rent from someone other than his parents. When he is ready, then talk about some arrangements - and consider sticking to a straight cash gift to help with the down payment.

--Peter
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