64. Save $500-$1,000 per month – Save money by selling parts of your house to other relatives
You can save money by selling parts of your house to other relatives, like your children.
Suppose, after 20 years, you have paid off $150,000 of a $200,000 mortgage. You thus still have to pay $50,000 worth of equity of the house.
You sell one or more bedrooms of the house to your children for a deal of $70,000. (You could even become co-signer so the mortgage is ensured to be accepted)
The $50,000 closes the household mortgage of $1,000 per month, the $20,000 profit closes the credit card debt of $20,000, thereby saving another $400 per month on interest payments.
As a result, the household budget is $1,400 less per month, the child takes a 30-year mortgage on the $70,000, thereby paying $500 per month, that is cheaper than paying rent for an apartment.
The house belongs fully to the family. If the family decides to sell the house within 10 years for a profit, the child also takes his profit and can close his mortgage of $70,000. Or even better, after 10 years, $50,000 of mortgage equity still has to be paid, but since the family saves $1,400 per month more or thus $16,000 per year, within 5 years, they can fully close the child his mortgage too.
Same way, a full house can be bought in full (like $150,000 foreclosure house), then is split into 2-3 bedroom apartments, mortgaged each by 2 children for $75,000 each (with or without co-signing of parents). Therefore, the house is fully paid by the family and the 2 children pay a low mortgage of like $500 per month over 30 years, which is cheaper than paying rent to strangers, like a vacation house or student house, thereby the children also build up value and build up credit and have their own place to stay, independent of the parents house, a place of their own, so this makes the household budget also cheaper, like only groceries to pay for the parents, the kids live in another house, saving another $400-600 per month in household groceries.