For some parents, a handwritten check with a lot of zeroes just isn’t good enough as a graduation present. It seems so insubstantial and unoriginal. So how about a piece of North Carolina in the form of Oak Island condos? A fabulous idea!
Real estate brokers say that in the last year, they have seen more parents shopping for condominiums for their grown children, hoping to take advantage of low mortgage rates and prices that are still about 20 percent down from the market’s peak.
These congratulatory condos are often small one-bedrooms, but on occasion they are bigger-ticket items because the parents see it as a long-term investment and a good place to park their money.
In many cases, brokers say, the parents often don’t live in the area and view Oak Island condos as a potential second home for themselves when the child decides to move on. Some buy it as a straight-out gift, a gesture of affection sweetened by the present generous tax exclusion. Others buy it as an investment and retain ownership, and still others acquire it through a family trust for joint ownership.
There are mundane issues to be figured out, like who pays the maintenance and for any work that needs to be done, and who gets any profits when the condo is sold. Make an agreement preferably in writing.
In one of the simplest scenarios, the parents buy and keep a condo in their name and agree to pay the monthly carrying costs, and the child lives there as a family member, not a renter. Condos permit this, but some co-ops allow only owners to be residents and may require that the child’s name be put on the proprietary lease.
If you’d like us to show you some Oak Island condos don’t hesitate to get in touch with us at your earliest convenience.