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Our parents have always planned to give the house to me, my brother and my sister. However since they're working and have their own families, the house was sold to me 4 years ago and is only under my name.  However, I'd like to move out one day and my brother has agreed to help me pay for a few years.  He'd like to in a way, invest in the house as well.  My only question is how do we split up the ownership of the house?  We don't want to add his name to the mortgage because it will affect him when he gets his own house in about five years or so. Also we'd have to refinance again at a higher rate most likely, I'm currently at 3.625% 30years fixed.

Eventually we would sell the house or rent it out after I get  my own place, and my parents move out. I was thinking if he pitches in for five years, that's 60 months.  So 60 months of out the 312 months remaining on the mortgage (I've been paying myself for 48 months so far) would be 19.2%.  Go by a percentage of the value of the house when we sell it.

I'm still trying to grapple with how we'll handle the property taxes which comes out to about $725/mo. 

Any ideas on how else I could handle this?

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I'm not Asian, but I'm part of an Asian family... and it is common for everyone to owe each other hundreds of thousands ... (more)

Crazytree (Oct. 09, 2016 @ 4:54a) |

You forgot to mention that he bought it at $300K+ less than fair market value, and was gifted $150K for the downpayment.... (more)

Chyvan (Oct. 09, 2016 @ 5:38a) |

Yeah. On a strict arms-lemgth deal, the owners would each own a third and be responsible for upkeep and financing. The o... (more)

TravelerMSY (Oct. 09, 2016 @ 1:59p) |

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My head hurts...

How was it "sold" to you when your parent intended to pass it on to all 3 siblings?

Why would your brother invest in a house that he already will own 1/3 on?

Are you paying the mortgage now or your parents?

Why makes thing unnecessarily complicated?

ZenNUTS said:   My head hurts...

How was it "sold" to you when your parent intended to pass it on to all 3 siblings?

Why would your brother invest in a house that he already will own 1/3 on?

Are you paying the mortgage now or your parents?

Why makes thing unnecessarily complicated?

  It was transferred to me.  Lets say the house is worth $1,000,000.  The mortgage is $350,000.  the remaining $650,000, or 65%, is split tree ways between my brother, sister and me.  So technically it's 56.6% for me and 21.6% for my brother and sister.  This is assuming I'm paying the $350,000 mortgage on my own.

He's helping/investing in it.  I don't have any issues paying for the house now. I created a budget and turns out I"m breaking even after everything.  But this isn't allowing me to save up for my own place.  I'm also currently single and would like to have extra going out money.  Not a lot, but just extra.  

I'm currently paying the mortgage on my own and have been the last four years.  The property taxes are what is killing me.  But for the last year I've had bi-weekly transfers going into a checking account for bills I know I'll have to pay so they dont' surprise me anymore. 

Do you see anyway to make it less complicated?  That's what I'm aiming for.  The basic is I'm looking for help to pay the mortgage, but I also want to find a way to let my brother know he gets something from it as well.

So your brother wants to help you pay your mortgage but wants equity? I assume he wants equity so his risk is reduced. He could always just give you a loan and put a lien/mortgage on the home.

If none of you can afford to buy the others out, just sell it and split the proceeds. Especially if you can't really afford the house on your own and don't want to live there.

You should have some kind of written agreement about all of this. I got a nice house deeply discounted.at the sheriffs auction a few years back after an informal deal like this unraveled.

Why aren't your parents paying a portion of the mortgage?

Sorry to answer your question with a question. Good luck!

^^^ what he said. There's no clean way to unwind this now. None. By having your brother helping out it just make it that much worse. I'm sure you have no meeting of the minds on what happens if the price goes way up or way down and how to properly account for up-keep and things like property tax or major unexpected repair.

Honestly, I don't know what's the best course forward.

As for paying for your "own" place, you can always refi and cash out since the house is your name only. One way that I advised other to keep a legacy-property in the family line is to form a LLC and airbnb the place.

eta: Asian by any chance?  The better way is to wait till your parent's passing, that way you get the stepped up cost basis.  I also bet they didn't do a gift-tax filing?

Yes Asian haha.  Well I'm not struggling to pay fo rthe house on my own at all. It's just that I' would like to have extra money.  I also don't want to sell because it's the house that we all grew up in and  my parents live here with me also.  ANd I don't want to ask them to pay for anything.  They have the resources in investments and I wouldn't want them to pull those out.  We'll see when my dad retires in a year or so.  

My brother and sister  both make substantially more money that I do, double and triple.  However that also entails student loans and they're both starting a family.  I made it clear that I don't need help and that it'd be an investment if they choose to pitch in. 

Since there doesn't seem to be a clean easy way to handle this. I think I'll just continue on my own and if help is truly needed, I'll grab a loan from my brother.  We're all on great terms and love each other and I would never do anything to swindle money from them. 

These scenarios come up a lot with Asian families that pool resources informally. I wouldn't be surprised if there were some resources online for working it out.

alphaivt said:   
ZenNUTS said:   My head hurts...

How was it "sold" to you when your parent intended to pass it on to all 3 siblings?

Why would your brother invest in a house that he already will own 1/3 on?

Are you paying the mortgage now or your parents?

Why makes thing unnecessarily complicated?

  It was transferred to me.  Lets say the house is worth $1,000,000.  The mortgage is $350,000.  the remaining $650,000, or 65%, is split tree ways between my brother, sister and me.  So technically it's 56.6% for me and 21.6% for my brother and sister.  This is assuming I'm paying the $350,000 mortgage on my own.

He's helping/investing in it.  I don't have any issues paying for the house now. I created a budget and turns out I"m breaking even after everything.  But this isn't allowing me to save up for my own place.  I'm also currently single and would like to have extra going out money.  Not a lot, but just extra.  

I'm currently paying the mortgage on my own and have been the last four years.  The property taxes are what is killing me.  But for the last year I've had bi-weekly transfers going into a checking account for bills I know I'll have to pay so they dont' surprise me anymore. 

Do you see anyway to make it less complicated?  That's what I'm aiming for.  The basic is I'm looking for help to pay the mortgage, but I also want to find a way to let my brother know he gets something from it as well.

  If it was given equally to you and your siblings, how do you end up with over 50% ownership?  What you are paying towards the mortgage is essentially your rent, you all still own 1/3 each.

because they haven't paid anything on the house.  I'm the only one, and it seems I will be the only one from now on, paying for it.  If all three of us were equally paying the $350,000 mortgage on the house from the very beginning then it'd be split 3 ways no?  Perhaps I'm missing a detail but that's how I'm seeing it.  I don't consider it rent just because if my parents were paying it and was still under their name, I'd be living here for free still lol.

alphaivt said:     It was transferred to me.  Lets say the house is worth $1,000,000.  The mortgage is $350,000.  the remaining $650,000, or 65%, is split tree ways between my brother, sister and me.  So technically it's 56.6% for me and 21.6% for my brother and sister.  This is assuming I'm paying the $350,000 mortgage on my own.
What a mess.  Let's start over.  Who's name is on the deed?  Who's name is on the mortgage?

If the house was legally transferred to you, then your siblings own nothing.  It's not "technically" anything else.  I honestly can't think of a sloppier way to handle a transaction like this.  You have completely screwed up the ownership scenario that you had hoped to achieve, and you have probably also created an enormous tax problem for yourself.  Get yourself to a real estate attorney and a tax adviser so they can try to salvage something out of this mess.  

alphaivt said:   because they haven't paid anything on the house.  I'm the only one, and it seems I will be the only one from now on, paying for it.  If all three of us were equally paying the $350,000 mortgage on the house from the very beginning then it'd be split 3 ways no?  Perhaps I'm missing a detail but that's how I'm seeing it.  I don't consider it rent just because if my parents were paying it and was still under their name, I'd be living here for free still lol.
  But they are paying - in terms of the rent they could be charging someone else, but can't because you live there.  You aren't paying the mortgage, you are paying rent to the owners (the three of you) who then use that money to pay the mortgage.

dcwilbur said:   
alphaivt said:     It was transferred to me.  Lets say the house is worth $1,000,000.  The mortgage is $350,000.  the remaining $650,000, or 65%, is split tree ways between my brother, sister and me.  So technically it's 56.6% for me and 21.6% for my brother and sister.  This is assuming I'm paying the $350,000 mortgage on my own.
What a mess.  Let's start over.  Who's name is on the deed?  Who's name is on the mortgage?

If the house was legally transferred to you, then your siblings own nothing.  It's not "technically" anything else.  I honestly can't think of a sloppier way to handle a transaction like this.  You have completely screwed up the ownership scenario that you had hoped to achieve, and you have probably also created an enormous tax problem for yourself.  Get yourself to a real estate attorney and a tax adviser so they can try to salvage something out of this mess.  

  
Wait, what? There is no mess.  At least not yet, if I just keep it the way things are now. I keep paying the mortgage which is just under my name. The original plan was for all three of us to pay for it, but since I had a second job at the time and my siblings were just graduating, I kept paying it. Now it's just the way it is, none of them have put any money into the mortgage. 

The ownership on paper is just me. No one else, but if we ever do decide to sell the house. I wantt o make sure it's split right. Assuming it'd be the 55/22/22% split mentioned above. 

Glitch99 said:   
alphaivt said:   because they haven't paid anything on the house.  I'm the only one, and it seems I will be the only one from now on, paying for it.  If all three of us were equally paying the $350,000 mortgage on the house from the very beginning then it'd be split 3 ways no?  Perhaps I'm missing a detail but that's how I'm seeing it.  I don't consider it rent just because if my parents were paying it and was still under their name, I'd be living here for free still lol.
  But they are paying - in terms of the rent they could be charging someone else, but can't because you live there.  You aren't paying the mortgage, you are paying rent to the owners (the three of you) who then use that money to pay the mortgage.

  But since I'm paying the full mortgage monthly payment, I'd be paying for what would be their share. Assuming the rent payment would be the mortgage payment.  To make things less complicated.  

I should note, we're not nickle and dime-ing each other here. We just want a general breakdown of how each of our ownership comes out to be. 

So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

dcwilbur said:   So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

  The value of the house was in the $800,000s. Purchased it for $500,000, was gifted $150,000 for the down payment, leaving $350,000 for the mortgage.  Financing and title is my name only.  

alphaivt said:   
dcwilbur said:   So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

  The value of the house was in the $800,000s. Purchased it for $500,000, was gifted $150,000 for the down payment, leaving $350,000 for the mortgage.  Financing and title is my name only.  

Now we're getting somewhere.  What did your attorney and tax adviser tell you about how this non arm's length transaction should be handled?

  

dcwilbur said:   
alphaivt said:   
dcwilbur said:   So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

  The value of the house was in the $800,000s. Purchased it for $500,000, was gifted $150,000 for the down payment, leaving $350,000 for the mortgage.  Financing and title is my name only.  

Now we're getting somewhere.  What did your attorney and tax adviser tell you about how this non arm's length transaction should be handled?

  

  That's assuming an attorney and tax adviser were present four years ago when all this was handled.  I know some families fight over money and in situations like this but we're all very modest and frugal people.  I just wanted to solicit some advice from the forum before considering going to a professional, but it seems that's where it's heading. 

alphaivt said:   
dcwilbur said:   So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

  The value of the house was in the $800,000s. Purchased it for $500,000, was gifted $150,000 for the down payment, leaving $350,000 for the mortgage.  Financing and title is my name only.  

  OK, so this makes a little bit more sense.  So you paid $500k for the house, with the understanding you will pass along the excess $300k equity to your siblings once you sell it.  And you were gifted a matching $150k which covered your down payment for the purchase - so you've each inherited $150k.  Your siblings dont own anything, you just informally owe them each $150k.

Glitch99 said:   alphaivt said:   
dcwilbur said:   So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

  The value of the house was in the $800,000s. Purchased it for $500,000, was gifted $150,000 for the down payment, leaving $350,000 for the mortgage.  Financing and title is my name only.  

  OK, so this makes a little bit more sense.  So you paid $500k for the house, with the understanding you will pass along the excess $300k equity to your siblings once you sell it.  And you were gifted a matching $150k which covered your down payment for the purchase - so you've each inherited $150k.  Your siblings dont own anything, you just informally owe them each $150k.


This makes it easier to understand now actually. Much simpler for me haha.

Now lets assume 15 years down the line we all want to sell the house. I'd still owe them each $150,000 no matter what right with no adjustments? Or should I take into account the appreciation of the house to be fair?

alphaivt said:   
Glitch99 said:   
alphaivt said:   
dcwilbur said:   So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

  The value of the house was in the $800,000s. Purchased it for $500,000, was gifted $150,000 for the down payment, leaving $350,000 for the mortgage.  Financing and title is my name only.  

  OK, so this makes a little bit more sense.  So you paid $500k for the house, with the understanding you will pass along the excess $300k equity to your siblings once you sell it.  And you were gifted a matching $150k which covered your down payment for the purchase - so you've each inherited $150k.  Your siblings dont own anything, you just informally owe them each $150k.


This makes it easier to understand now actually. Much simpler for me haha.

Now lets assume 15 years down the line we all want to sell the house. I'd still owe them each $150,000 no matter what right with no adjustments? Or should I take into account the appreciation of the house to be fair?

  You took all of the risk on this. You reap all of the benefit. If you want to be super "fair" price in interest at the prime rate. 

Good point! Thanks everyone, appreciate all the advice so far!

Technically, you are actually getting the worst deal of the three siblings, because each of you are intended to get $150k, but you are required to provide free housing to your parents at no cost for an indefinite period with your piece. Even though your siblings make much more than you.

another way to look at it, lets say you want to take money from your brother, dont bring house in that subject at all

make it a separate deal and say, i ll pay you 4% tax free interest for whatever money you "lend" me

fair?

about 150k - let say you sell after 10 years, it may appreciate or may be it will go down, will you then owe less than 150 k to them? is that acceptable to them if it goes down?

I've seen things go south after parents are gone. Flush it all out now, with your parent's blessing so there's no issue later one. Brothers and Sisters obey their parents' will more than they'll obey your idea of what's fair after your parents are gone.

Rajjeq said:   Technically, you are actually getting the worst deal of the three siblings, because each of you are intended to get $150k, but you are required to provide free housing to your parents at no cost for an indefinite period with your piece. Even though your siblings make much more than you.
  Yeah, I feel like I got the short straw mainly because I'm paying the property taxes and the utilities as well.  But I absolutely don't see me providing free housing to my parents as a negative.  Especially with all they've done for us haha.  I actually feel guilty I asked my mom to help pay for the property taxes last week and agreed to it.  I quickly reversed my stance and told my parents not to worry about anything.
 

mrkk said:   another way to look at it, lets say you want to take money from your brother, dont bring house in that subject at all

make it a separate deal and say, i ll pay you 4% tax free interest for whatever money you "lend" me

fair?

about 150k - let say you sell after 10 years, it may appreciate or may be it will go down, will you then owe less than 150 k to them? is that acceptable to them if it goes down?

  Yup, that makes more sense as well. Will keep the house out of it.  The way I see it now, the value of the house is $850,000.  With $275,000 left on the mortgage. I owe them a total of $300,000, so that'd leave me with $275,000 in cash I'm okay with that.  I don't think the value of the house will depreciate to the point where I'd lose money, but if it does get there, I'm sure they'll understand.  Their spouses also make quite a bit lol.  If need be, it's likely they'd give up their share of the house.  We're all very good terms with each other. 

alphaivt said:   
Rajjeq said:   Technically, you are actually getting the worst deal of the three siblings, because each of you are intended to get $150k, but you are required to provide free housing to your parents at no cost for an indefinite period with your piece. Even though your siblings make much more than you.
  Yeah, I feel like I got the short straw mainly because I'm paying the property taxes and the utilities as well.  But I absolutely don't see me providing free housing to my parents as a negative.  Especially with all they've done for us haha.  I actually feel guilty I asked my mom to help pay for the property taxes last week and agreed to it.  I quickly reversed my stance and told my parents not to worry about anything.

  He isn't saying its a negative, he is saying its an extra cost for you that both your sister and brother aren't covering.  Say if your parents wanted to live somewhere else, a retirement community.  Your sister, brother and yourself all would chip in equally at 1/3 the cost.  This would allow you to get a smaller house or a condo at a significant savings due to less property and taxes.  So inherently you are taking all the financial burden for supporting your parents living conditions instead of 1/3.  So, really, if you can get past it, don't be ashamed to take some money from your brother/sister to support your parents, even more so since you might be the one doing all the small things like picking up some groceries for them or taking them to the doctor, etc that also has a cost to you.  

gotpong said:   
alphaivt said:   
Rajjeq said:   Technically, you are actually getting the worst deal of the three siblings, because each of you are intended to get $150k, but you are required to provide free housing to your parents at no cost for an indefinite period with your piece. Even though your siblings make much more than you.
  Yeah, I feel like I got the short straw mainly because I'm paying the property taxes and the utilities as well.  But I absolutely don't see me providing free housing to my parents as a negative.  Especially with all they've done for us haha.  I actually feel guilty I asked my mom to help pay for the property taxes last week and agreed to it.  I quickly reversed my stance and told my parents not to worry about anything.

  He isn't saying its a negative, he is saying its an extra cost for you that both your sister and brother aren't covering.  Say if your parents wanted to live somewhere else, a retirement community.  Your sister, brother and yourself all would chip in equally at 1/3 the cost.  This would allow you to get a smaller house or a condo at a significant savings due to less property and taxes.  So inherently you are taking all the financial burden for supporting your parents living conditions instead of 1/3.  So, really, if you can get past it, don't be ashamed to take some money from your brother/sister to support your parents, even more so since you might be the one doing all the small things like picking up some groceries for them or taking them to the doctor, etc that also has a cost to you.  

  Good point about my caring for my parents and the opportunity I'm passing as well.  I'll bring it up to them and see how it pans out.  Would definitely make things easier on me financially. 

I'm in a similar situation (I'm Asian too) and to me the solution is simple.

Each person's share of the equity in the house corresponds to how much money they put in. It changes every month depending on who is paying the bills.

​In your case, you put in, or bought, by borrowing, a 350k share of the house. The mortgage loan for that 350k is your own affair and doesn't affect your sibling's shares.

The remaining 450k share of the equity (800k - 350k = 450k) is divided equally among the siblings, which means 150k goes to each including you, meaning you own a total of 500k, and your siblings 150k each.

​Each and every month, the share changes as bills are paid, depending on who is paying the bills.  You are paying the tax bill, so your share increases in accordance with how much you pay.

​Since your siblings contribute nothing, and you are paying the tax bill, your share goes up each month as you pay that tax bill. If any other household maintenance expenses arise, whoever pays it gets credit and his/her equity share adjusts accordingly.

​Keep a month to month record of expenses or contributions as they are made, and to compute each person's share, simply add up all the money each of you contributed, and divide to figure percentage shares.

​Since you are the only one paying the tax bill, your share will go up while your siblings' go down. But siblings have no need to worry, the value of the property will probably appreciate faster than the tax bill.

​So the dilemma of figuring your brother's share of equity if he contributes to your expenses is simple.  Simply add his contributions to his monthly tally, and each month, add up everybodys' total contribution and divide to figure perrcentages.

​Fire up an Excel spreadsheet and keep a running tally of what each sibling has contributed, and adjust equity share accordingly. The starting point is 500k for you, and 150k for each sibling. Make an entry each month to record your paying the tax bill, and if your brother contributes, how much he contributed.



 

alphaivt said:   
Glitch99 said:   
alphaivt said:   
dcwilbur said:   So, you bought the house at fair market value from your parents, obtained financing in your name only, and title/deed is in your name only?  If not, fill in the details.

 

  The value of the house was in the $800,000s. Purchased it for $500,000, was gifted $150,000 for the down payment, leaving $350,000 for the mortgage.  Financing and title is my name only.  

  OK, so this makes a little bit more sense.  So you paid $500k for the house, with the understanding you will pass along the excess $300k equity to your siblings once you sell it.  And you were gifted a matching $150k which covered your down payment for the purchase - so you've each inherited $150k.  Your siblings dont own anything, you just informally owe them each $150k.


This makes it easier to understand now actually. Much simpler for me haha.

Now lets assume 15 years down the line we all want to sell the house. I'd still owe them each $150,000 no matter what right with no adjustments? Or should I take into account the appreciation of the house to be fair?

  These are not questions any of us can answer for you. The best time to figure out the answers was 4 years ago. The 2nd best time is now. If you figure it out 15 years from now, there is going to be some major resentment in your family.

Regarding the appreciation: would you take into account depreciation and owe them less? The fact that you are paying all the taxes (and I'm assuming insurance), leads me to believe you shouldn't consider appreciation since they aren't investing anything in the ownership. If anything, it seems like at some point (whether it's when you sell or before that, and whether it's at the same point or different points for each sibling), you should be paying each of the siblings $150,000 plus interest since 4 years ago. (At the rate you agreed to 4 years ago...)

megatard said:   I'm in a similar situation (I'm Asian too) and to me the solution is simple.

Each person's share of the equity in the house corresponds to how much money they put in. It changes every month depending on who is paying the bills.

​In your case, you put in, or bought, by borrowing, a 350k share of the house. The mortgage loan for that 350k is your own affair and doesn't affect your sibling's shares.

The remaining 450k share of the equity (800k - 350k = 450k) is divided equally among the siblings, which means 150k goes to each including you, meaning you own a total of 500k, and your siblings 150k each.

​Each and every month, the share changes as bills are paid, depending on who is paying the bills.  You are paying the tax bill, so your share increases in accordance with how much you pay.

​Since your siblings contribute nothing, and you are paying the tax bill, your share goes up each month as you pay that tax bill. If any other household maintenance expenses arise, whoever pays it gets credit and his/her equity share adjusts accordingly.

​Keep a month to month record of expenses or contributions as they are made, and to compute each person's share, simply add up all the money each of you contributed, and divide to figure percentage shares.

​Since you are the only one paying the tax bill, your share will go up while your siblings' go down. But siblings have no need to worry, the value of the property will probably appreciate faster than the tax bill.

​So the dilemma of figuring your brother's share of equity if he contributes to your expenses is simple.  Simply add his contributions to his monthly tally, and each month, add up everybodys' total contribution and divide to figure perrcentages.

​Fire up an Excel spreadsheet and keep a running tally of what each sibling has contributed, and adjust equity share accordingly. The starting point is 500k for you, and 150k for each sibling. Make an entry each month to record your paying the tax bill, and if your brother contributes, how much he contributed.



 

  This doesn't 100% make sense because he lives there. So it is illogical for all ongoing expenses to add to his relative equity. 

Truthfully, the fair way to handle this would be as follows:

He got 150k, his siblings got 150k each buried in the house. So we start with him owing the siblings 150k each.

I say forget appreciation and interest. Appreciation he is shouldering all the risk, and interest rates are minimal plus he has the extra work/burden of having his parents there.

For expenses, make a determination as to what the actual costs of his parents living there are, in terms of a proportion of overall expenses based upon how much square feet they occupy and if he covers any of their other expenses. 1/3 of these expenses should be agreed to be charged to each sibling, either reducing the amount owed to them or via cash transfers.

p.s. A conversation needs to be had right now about the future, wherein you make clear to your siblings that the fact that they are living with you does not mean you are 100% responsible for their care no matter what happens. If they fall ill or become unable to care for themselves, you don't want to be holding the bag alone.

Why not say to pops "Hey pops, since I owe each sibling 150k why not adjust my inheritance down 300k and up each of their's 150k."

If I'm reading this correctly, the house's current value is $1mm, if you were to sell it today, each sibling gets $333,333 (minus fees, etc.). If you sell it today though, your siblings will have paid nothing in upkeep, you will have paid at minimum $32,000 in property taxes (roughly). I would call utilities a wash because you would have paid your own utilities either in this house or somewhere else. You could look at this in two ways, when you sell, the $32,000 is the "rent" you paid to have a roof over your head for these 4 years while your siblings provided their own housing. Alternatively, you could look say that each sibling will now get $333,333 - $10,666 = $322,666. You lived "rent free" for 4 years because you were also taking care of your parents. Your liquidity challenges are an unfortunate consequence of a free house.

alphaivt said:     Yup, that makes more sense as well. Will keep the house out of it.  The way I see it now, the value of the house is $850,000.  With $275,000 left on the mortgage. I owe them a total of $300,000, so that'd leave me with $275,000 in cash I'm okay with that.  I don't think the value of the house will depreciate to the point where I'd lose money, but if it does get there, I'm sure they'll understand.  Their spouses also make quite a bit lol.  If need be, it's likely they'd give up their share of the house.  We're all very good terms with each other. 
 

  I am glad you guys are on good terms and that your siblings and their spouses are doing well, financially speaking.
Keep in mind two things: Family disagreements over money/inheritance is not necessarily correlated with how well of (financially) someone is. When you throw spouses in the mix, all bets are off.

In short, I strongly agree with others in terms of "settling" this (i.e., everyone formally agreeing to what their "share" is how it will be split when you sell eventually) now when parents are still around.

Rajjeq said:   
megatard said:   I'm in a similar situation (I'm Asian too) and to me the solution is simple.

Each person's share of the equity in the house corresponds to how much money they put in. It changes every month depending on who is paying the bills.
[...]
Fire up an Excel spreadsheet and keep a running tally of what each sibling has contributed, and adjust equity share accordingly. The starting point is 500k for you, and 150k for each sibling. Make an entry each month to record your paying the tax bill, and if your brother contributes, how much he contributed.


This doesn't 100% make sense because he lives there. So it is illogical for all ongoing expenses to add to his relative equity. 

  
​My reading of the situation is that the OP's siblings are not interested in charging rent or accounting for lost rent from their parents and brother.

​But if they do want to act as landlords and account for rent, the system I described can accommodate. Agree on a fair rent number, and add it to the monthly tally as a "rent opportunity cost", and apportion it or divvy it up amongst the shareholders in proportion to their equity share.

alphaivt said:   
Rajjeq said:   Technically, you are actually getting the worst deal of the three siblings, because each of you are intended to get $150k, but you are required to provide free housing to your parents at no cost for an indefinite period with your piece. Even though your siblings make much more than you.
  Yeah, I feel like I got the short straw mainly because I'm paying the property taxes and the utilities as well. 

WTF?!?! You own the house, and live there. Who the hell would you expect to pay the property taxes for your house?

You are the one NOT getting the short straw, because you're leveraging your sibling's $300k at zero cost. They're the ones who either are (each) owed $150k from you at 0% interest to be repaid whenever you feel like, or they own $150k worth of house that you are paying them nothing to use indefinitely.

Is there a reason why your parents gave this out now to you and not after put it in their will (to be inherited)? Did they just want some cash upfront?

I'd just like to say that I am not Asian and this all seems crazy.

Skipping 3 Messages...
Yeah. On a strict arms-lemgth deal, the owners would each own a third and be responsible for upkeep and financing. The occupants would pay rent to the owners.

if I were the other siblings, I'd be expecting a third of that house as promised, without regard to any of the OPs payments or expenses.



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