Equity sharing agreements are becoming increasingly popular as a way to pay off student loans. But there are some important things to consider before entering into such an agreement.
Here are some things to think about before equity sharing to pay off student loans:
1. How long do you plan to stay in the home?
2. What is the likelihood of the property appreciate in value?
3. What are the risks and rewards associated with equity sharing?
4. What are the tax implications of equity sharing?
5. What happens if one party wants to sell the property?
6. Is an equity sharing agreement right for you?
Only you can answer these questions, but it's important to do your homework before entering into an equity sharing agreement. It could be a great way to pay off your student loans, but there are risks and rewards to consider before taking the plunge.