I was referred to Dawna by a mutual friend when I started looking for my dream retirement beach house in Cayucos. Our journey together took three years with lots of looking and discussions to finally find me the perfect house. I can't thank Dawna and her amazing Executive Assistant Jodi for all of their patience, helpfulness and hard work on my quest to find the perfect home. Both Dawna and Jodi made me feel like they had all of the time in the world for me when I called with questions or concerns. Dawna is always cheerful and such a pleasure to work with. She is very responsive and extremely knowledgeable about the central coast. I highly recommend Davies Company Real Estate for all of your real estate needs. I wouldn't hesitate to use Dawna again and I did.... I used Dawna to sell my Paso Robles home after I purchased my new home. I once again found both Dawna and Jodi to be extremely professional and knowledgeable about the market. Dawna did a wonderful job of marketing my house and went above and beyond until it sold.
- Keep agreements simple- All agreements should be easy to explain to outside parties (other children, family members, legal advisors, tax advisors, etc.) Have all agreements in writing, this avoids conflicts over assumptions and expectations.
- Know the benefits to all parties- Over 33% of first-time homebuyer purchases involve gift/loan funds, according to a recent CAR Homebuyer Survey. This is an increasingly common way of transferring wealth or advance inheritance to the next generation. It can make the purchase much easier for the buyer, lowering interest rates and monthly expense because of to a higher down payment.
- Determine how to contribute- Per IRS.gov, there is a maximum amount each individual can gift to another person annually. This can be significant amount towards a purchase. For example, if two parents each made gifts to their child and partner, this could be a substantial gift towards a downpayment. Of course, gifts can be larger, but may have tax consequences. Consult your tax advisor for more information.
- Decide if you want to be in a partnership- If you are a joint owner or lender to your children, you are in a form of a partnership with your child. It may be more beneficial for all parties to keep interests separate by gifting.
- Review your own estate plan- See your financial planner, CPA, and estate planning attorney for advice on how you can contribute and to determine if it’s feasible with your current personal financial plan and needs.