A parent can transfer his or her primary residence to a child or children without reassessment. The children can live in the home, use it as a vacation home, or rent it. A parent can transfer up to $1,000,000 of California real property other than a primary residence to a child or children without reassessment.
How does a condo purchase work?
A condo is a building with individual units for sale instead of for rent. When you buy a condo, you buy one individual home within a building or group of buildings, plus an ownership share of all the common areas in the condo community. Common areas might include a lobby, laundry room, gym or rooftop deck.
Is it good idea to buy condo for Kid?
When you sell, the manner of your ownership may also affect the tax consequences of the sale. If you’re considering purchasing a condo or other property for your child to live in while at college, give us a call before you make a commitment.
Is it possible to buy a college condo?
Her parents are researching the cost and availability of rentals near campus. But they’ve also heard of families who found another alternative: buying a college condo or single-family home as an investment property or second home.
Can a condo be considered an investment property?
In either of these cases, you may be considered to own the condo or home as an investment property, generally with a higher interest rate and closing costs and a different set of tax rules. If you want to own the new property as a second home and not an investment property, there are a number of specific requirements.
What kind of mortgage can I get for a condo?
There is an option that offers a lower owner-occupied interest rate (and associated tax benefits) combined with a low down payment. It’s the FHA non-occupying co-borrower loan — also known as a kiddie condo mortgage. It can be used to purchase a townhouse or single-family home as well as a condo.