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A Home as a Gift: Good or Bad Idea?

The Wall Street Journal recently posted an article regarding husbands purchasing homes as a surprise for their spouses. I was floored! Who does this?

Admittedly, the agents who reported these incidents work in highly affluent markets where the properties being purchased are often second or even third homes, not primary residences. I could not imagine being left out of the decision-making process for such a large investment, and it was interesting to note that my opinion was reportedly shared by many others. The real estate agents in this article confirmed that the gesture was often not well-received and often had costly consequences. Many high-end markets have substantial transfer taxes included in their closing fees, so turning the property around for a quick profit is high unlikely.

I think the take away from this story is to stick to a gift that is returnable just in case, and always get a gift receipt! With the holiday season upon us, this seems like good advice for everyone.

How would you feel if your significant other purchased a property as a surprise for you?

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