Interesting Opportunity: My future retirement home?

[Fu Mainechu]

deleted

[frugaliknowit]

You do not mention your age.  How old are you or how far are you from retirement?

[sol]

In general, I'm always in favor of keeping real estate in the family.  Building dynastic wealth is much harder when everyone is sending money out of the family for various reasons.

In this case, however, I'm not sure I like your plan.  You're proposing paying interest to a bank so that your parents can have extra income now.  Wouldn't it be better to just have your parents do seller financing, and you pay them your mortgage payments directly? 

Taking it a logical step further, they would then pay you rent to offset what you are paying them in mortgage.  See how silly this is?

I think a better solution is to just have your parents leave you the house in their will.  They would still get to live there as long as they like, and you would inherit the property with whatever residual mortgage they still have on it.  Same net outcome, way less extraneous fees and expenses.

[mulescent]

One other thing to consider is when you would actually use this summer house.  If you won't live there until decades from now, then investing your money in the stock market is likely to net you far more than investing it in a very rarely used house.  You could sell this house when they are done with it, rent one occasionally when you want to return to the area and then buy the house you want in the future.

[MorningCoffee]

Do you have any siblings? The mention of selling it to you "well under market value" raises a potential red flag for me if you have any brothers or sisters. I've seen these situations get ugly.

[Cassie]

If you want to retire there I really do not see a huge downside.  Also if in the future your plans change it sounds like you could always sell it.  Lakefront property is scarce in many areas.