How to lock in that home equity before bubble bursts? - Page 2
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Thread: How to lock in that home equity before bubble bursts?

  1. #11
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    Quote Originally Posted by naysmitj View Post
    If your parents are happily living out their final days in the house they have lived in for decades and they do not owe any money on it, why are you so concerned about locking in a what you believe is a windfall?
    +1

    Your parents already bought late... Those houses were $200k not too long ago, then they were up $500k... about 10 years later, it's $1 million, then your parents took over, then it's $2 million.

    How would you know where the peak is? That is one issue.

    The second issue is, how do you cash out and still enjoy it? There is no way. You can sell and lease back... but those investors will probably want $5000 per month rent for $2 million home. Would your parents want to pay $60,000 per year just to maintain the same residence? Would your parents be ready to move whenever their landlord needs it for personal use or sell it?


  2. #12
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    House was bought in '97 for $400k. Anyway, they're nowhere near their final days lol, but thinking of downsizing to a $700k/1000sf condo to lock in the gains now that the 2nd kid is about to move out too. I'm just wondering if there's a less disruptive way for them to lock in gains, but it doesn't seem so.

  3. #13
    Senior Member My Own Advisor's Avatar
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    I would simply enjoy life with a paid off home in Vancouver. Be thankful and enjoy
    Hidden Content - Saving and investing my way to a million dollar portfolio.

  4. #14
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    Yeah, but it's not his house...he's trying to cash in on someone else's (his parent's) good fortune...a little greed and entitlement creeping in.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  5. #15
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    Haven't checked the site in a while...

    ^^oh wow, kinda presumptuous? It's their retirement idea - I'm just asking out of curiousity!

  6. #16
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    Sale and leaseback would be the only way, but it may be difficult to find someone willing to give them a lease that allows them to stay in the house as long as they want. I heard of a situation in France where a man bought an apartment from a woman in her 70s or 80s under those conditions. She lived past 100, and outlived him.


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