Helping Your Children with the American Dream

By
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Most areas of the country have been experiencing some very attractive conditions for the first time buyer, and current tax laws make this a very attractive time for parents to help their children become homeowners.  Prices and interest rates may never be lower than they are now, so strongly consider this potential investment in your children's future.Help with a home purchase

As parents, you can provide a significant down payment, free of taxation.  Individuals may gift up to $13,000 per year, so two parents making gifts to their child and their spouse can give a total of $52,000 in one year without paying a gift tax!

Above and beyond the outright gift, you may loan your family money, as long as you charge a minimum interest rate, which is currently very low.  Then you can make your gifts each year, and your child's family can use the gifts to pay the loan!

If neither of these options is attractive, you could purchase the home yourself and then set up a Qualified Personal Residence Trust (QPRT), with the home passing to the children at the end of an established term, tax free.  You will need to consult with your financial adviser and employ an attorney to handle this kind of transaction.

Begin by meeting with a real estate agent and explaining your situation.  Contrary to what you may have been hearing, there is practically no better investment today than real estate.

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Florida Martin County
Groups:
Realtors®
The Lounge at Active Rain
1st Time Buyers
Advice for Buyers
Tags:
buying a home
children
gift
tax credit

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
5,000,232
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Gabe....I have three children and gave each of them their down payment for their first home.....two are still in it, one has moved on to his second home.

Nov 27, 2009 10:57 PM #1
Rainmaker
1,142,060
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Gabe, That $52,000 would outright buy a house in some areas of Florida. This really is a good time for folks that normally couldn't get a property to get one. Just be prepared for some fierce competition.

Nov 27, 2009 11:07 PM #2
Rainmaker
372,890
Judy Jennings
The Green Company - Ashland, MA
Broker - The Lanterns at Warren Woods - Ashland MA

Gabe - Good information to pass onto our clients. My family is in the middle of finalizing a QPRT right now. Many people don't realize how important it is to start estate planning, especially when there is real estate involved.

Nov 27, 2009 11:14 PM #3
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Bryant, you're correct about the competition in some of our areas.  That's started prices going up in some local areas.  That's why it's probably now or it will be much more expensive later.

Very nice Barbara, well done.

Thanks Judy.

Nov 27, 2009 11:24 PM #4
Rainmaker
1,516,262
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Gabe - Good information here. I guess the bottom line is there are many ways to assist your child in the home purchase/ownership process. Thanks.

Nov 28, 2009 12:42 AM #5
Rainer
16,600
Mike Morgan
Internet Marketing for Real Estate Agents and Brokers - Jensen Beach, FL

Great post Gabe.  I would try to discuss this with clients but it is a delicate subject to discuss with them.  Now that I think about it, I should have had it in our marketing material and on our website.  Thanks.

Nov 28, 2009 12:44 AM #6
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks Gary and Mike.

Nov 28, 2009 12:49 AM #7
Rainmaker
382,670
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Gabe: Great advice - too many people forget about the gift tax until the "deed" is done and the papertrail is non existent.

:)

Nov 28, 2009 03:02 AM #8
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Very true Matt.

Nov 28, 2009 09:58 AM #9
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for reading.  You can find additional Stuart FL real estate information by clicking here.

May 29, 2015 06:53 AM #10
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Barbara, thanks for taking the time to comment it is always appreciated.

Dec 22, 2017 07:47 AM #11
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Bryant, thanks for taking the time to comment it is always appreciated.

Dec 22, 2017 07:47 AM #12
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Judy, thanks for taking the time to comment it is always appreciated.

Dec 22, 2017 07:48 AM #13
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Gary, thanks for taking the time to comment it is always appreciated.

Dec 22, 2017 07:48 AM #14
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Mike, thanks for taking the time to comment it is always appreciated.

Dec 22, 2017 07:48 AM #15
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Matt, thanks for taking the time to comment it is always appreciated.

Dec 22, 2017 07:48 AM #16
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
4,797,361

Gabe Sanders

Stuart Florida Real Estate
Ask me about Stuart FL real estate
*
*
*
*
Spam prevention

Additional Information