Anyone help with down payments?

amother

Coffee

Tue, Jun 11 2019, 12:31 am

amother [ Cerise ] wrote:

Why did you need a heter iska if the loan was interest free?

Just to clarify. We didn't charge any interest and we made no profit. However, the money was taken as a loan against our stocks at a very low interest rate charged to us by the brokerage. My brother agreed to pay the interest that we were charged. This way we can keep our stocks where they are and he can get his loan. We don't lose money and we don't make money either.

SacN

Tue, Jun 11 2019, 4:53 am

Quote:

I actually did this and made enough to sell and have a down payment where I wanted to live. Israeli charadim buy property as soon as they can because all their kids need somewhere to live. And the community is growing at a crazy rate, housing is never going to keep up.
Having said that things are not what they were ten years ago so maybe prices won't rise as much as they have in the past....but I'm sure there are still opportunities to pick a winner..... But yes there is risk...

Israeli charedim buy property when their children get married because that's part of the deal for the shidduch. They often take out all kinds of crazy loans to do so.
I'm happy it worked out for you, but meantime I don't have the money down for a place in Tverya either. By the time I do, who knows what the prices will be.

If I am able to buy, it will be some part nes, some part hashgacha, many parts hard work.

Either way, that's how you pay for a house--no matter where the money come from, it's all hashgacha.

Israeli_C

Tue, Jun 11 2019, 5:05 am

amother [ Dodgerblue ] wrote:

Be careful borrowing money though. My in laws came over to us one day and asked for all the money back to be paid right away.

Exact same story. Only my MIL was jealous when she saw DH and I decorating our new apartment and within months of us forking out everything we had to buy it, she announced that she wanted to buy her own apartment. Immediately. And because she has a dodgy off the books 'business' she not only wanted her 'loan' returned (which we needed a bank loan on high interest to repay immediately) but also wanted us to go into more debt to 'help' her.

Iymnok

Tue, Jun 11 2019, 8:13 am

Chareidim whoarestillin could afford it buy diras "on paper" while their daughters are still in high school. It’s rented out until they get married then transferred to the young couple. They may rent a machsan dira so they could come out ahead on rent (vs. mortgage) for the first year or so.

33055

Tue, Jun 11 2019, 8:27 am

Israeli_C wrote:

Did you take on the additional debt?

Israeli_C

Tue, Jun 11 2019, 8:51 am

Squishy wrote:

Did you take on the additional debt?

Hell no! Of course, I'd to be the 'bad guy' and say no, which she couldn't comprehend since, according to my mil, it apparently wasn't my money to begin with (dh works, I'm a sahm). Good thing too, because we'd twins a year later. Mil also suddenly 'discovered' she had some more cash stowed away shortly after saying no and not only did she buy, she also had enough to renovate!

shoshanim999

Tue, Jun 11 2019, 9:17 am

amother [ Dodgerblue ] wrote:

My parents and in laws helped on our second home. Our small starter home we paid for ourselves. It was not that expensive, and we didn’t have many expenses then. Unfortunately we did not make much money if anything when we sold, because we bought at the height of the market and probably overpaid too. But we really needed to move for various reasons.

Be careful borrowing money though. [b]My in laws came over to us one day and asked for all the money back to be paid right away. We ended up having to borrow to pay it back. It wasn’t fun. My parents are very different and gave us the money with the possibility of paying back one day if we can afford it. I’m not used to the way my in laws are, and wasn’t expecting this.[/b]

[u]

What do you mean they came to us "one day" and asked for all the money back "right away"? When we are talking about significant sums of money there must be an agreement or some kind of understanding regarding what the expectations are as far as what is happening. Is the money a gift? Is it a loan? If it's a loan, when do they expect the money back? Do they want a monthly payment?

A parent can't give a child for example $50,000 in help towards a down payment and then 5 years later make a phone call saying, " Can I stop over tonight to pick up a check for the 50k I gave you a few years ago"? If they would do that, the answer is no, I don't have it. We will have to talk about it and figure something out.

amother

Tan

Tue, Jun 11 2019, 9:54 am

shoshanim999 wrote:

My brother borrowed money from family and the lender generously said they can pay it back whenever. And then the market crashed and he lost all his money. And he told them he feels terrible but he needs the money back today. This was just a few months after they borrowed it.

shoshanim999

Tue, Jun 11 2019, 10:21 am

amother [ Tan ] wrote:

Sure it's a tough situation for everyone. I still feel though if a family member lends another family member a large some of money with no specific arrangements agreed upon with regard to repayment, the giver/lender cannot show up at the door and demand the money back immediately. In essence, no structured payment plan is an agreement that this is a heimish style loan where if the lender decides they want their their money back there will be a reasonable payment plan arranged.

mig100

Tue, Jun 11 2019, 11:20 am

shoshanim999 wrote:

The bolded is the key word
It all comes down to how reasonable the parties r....