First Time Buyer - Buying with Father... Good or Bad Idea?

dccarm

pbradley936 wrote:

Forgot to mention how capital gains works which would help. Your only property/home is exempt from Capital Gains Tax. Any other property is not. Assumming your father has his own home if he owns another property any gain is taxed at 40%. There are allowances but that is it in a nutshell.

Of course your father could simply give you an interest free loan / gift (or loans) to help buy the house and pay for the mortgage rather than actually buying 50% of the property. If this happened, and then you made a similar loan (or gift) to him on the sale of the house there would be no Capital Gain to be taxed. As seperate transactions, these would be perfectly allowable, but if they were all shown to be part of one big agreement then Capital Gains Tax would apply. (Gifts of cash would form part of your father's estate for Inheritance Tax purposes if he died within seven years of making them).

Zammo

What's going to happen if it goes down in value? Will he be willing to share the negative equity. Might be something worth discussing with him.