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Dear Doctor Love,
I am twenty-two years old and I am very fortunate. I have a good paying job and still live with my parents in the house my father built. They don’t have any debts and have never let me pay them rent so I have saved most of my salary and contribute only to groceries and utilities. Recently they have been considering selling the house and moving to Orange Walk. I am horrified at the idea of selling my childhood home. Not only will I not see my mom every day, someone else will have our house. I am sick with worrying about this. I know this is a decision for my parents but it would break my heart to lose my home.
/s/Anon
Dear Anon,
The Doctor is neither a real estate agent or banker but is capable of offering sound advice for a situation like this.
Keeping a home within the family is important, especially with the rising property values on the island but most parents cannot afford to give their children property outright. If they decide to move, other arrangements, usually the sale of the property, must be made. Your obvious answer is to buy the property yourself.
There are two possibilities for financing—a mortgage with a financial institution or asking your parents to carry a mortgage for you. You know your salary and your monthly expenses, so work out your monthly budget. Remember to include insurance and taxes. Approach your parents and show them how you can purchase the family home—with their help.
If they are able to finance part of your purchase, you will save thousands in interest over the life of the mortgage. Get an appraisal and agree on a purchase price. Even though you would be buying from your parents, make a cash down payment. It shows good faith on your part as a responsible buyer and shortens your repayment schedule. Have the sales agreement written up and you can keep your home in the family.
For whatever reason, if they are unable to finance, then the three of you should see an advisor at DFC, their office is on Barrier Reef Drive. The loans officer will advise you on how to proceed and they offer much lower interest rates than banks. As a last resort, the credit union is easy to work with but you will have to have ten percent of the purchase price and the interest rates are higher.
You may not have anticipated buying a property alone and at your age, but you can do this and be proud.
