I have about $50k saved up for a second home, a lakehouse. I'm 50 and can buy one now, or wait a year or so to save up about 30k more. We're looking at about a $200,000 range for the house. That's all set and budgeted. However, my parents live seven hours away and need to move closer, because they are now in their 80s. My sister lives up here with her family as well, so between us and our spouses/kids, we can keep an eye on them. They want to move, but they are really dragging their feet due to all the decisions that have to be made.
They're interested in a lakehouse in the same price range. Here's my question: what would be a reasonable and fair way for me to go in with them on the purchase of a house? They can live in it, and then when they pass, I would like to pay it off and have it in my name. So, should I suggest we buy it together, with it in both our names, and just put in the will that it goes to me out of my share of the estate?
I'm also wondering about how this might affect their taxes, specifically capital gains. The house they're in now might sell for $325k or so. How does that tax apply? Should we split the cost of the house 50/50?
I just had this idea, and I haven't thought it through, so I'd appreciate everyone's thoughts. I'm sure there are a lot of things I'd need to consider, so any brainstorming ideas you have on this, I'd appreciate.