That’s like what is known as a “life estate” except for a fixed term of years. It has similiarities to offering a long-term lease for an upfront payment . . and many of the same problems. The temporary possessor doesn’t care about the value of the property in year 51, so has every incentive to defer maintenance and otherwise maximize their cost/benefit ratio. Just ask anyone in an old condo association about the tendency to defer major costs until someone else owns their unit . . .
If you handle the maintenance, then this isn’t much different than a lease . . . better to get a bank loan and be an ordinary lessor, because the 50-year term and upfront cash requirement are going to depress how much you make. If you plan on enforcing maintenance requirements for the other person, that will be a headache and could be costly.
That’s like what is known as a “life estate” except for a fixed term of years. It has similiarities to offering a long-term lease for an upfront payment . . and many of the same problems. The temporary possessor doesn’t care about the value of the property in year 51, so has every incentive to defer maintenance and otherwise maximize their cost/benefit ratio. Just ask anyone in an old condo association about the tendency to defer major costs until someone else owns their unit . . .
If you handle the maintenance, then this isn’t much different than a lease . . . better to get a bank loan and be an ordinary lessor, because the 50-year term and upfront cash requirement are going to depress how much you make. If you plan on enforcing maintenance requirements for the other person, that will be a headache and could be costly.