The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: tinkerbell85 on October 21, 2015, 12:39:04 PM
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My husband and I are in our 30s with 2 small kids. We are transferring to the Dallas area in a few months. My parents are around 65 and my dad has this idea that he'd like to help us buy a bigger house when they retire in the next few years. They plan to move to be close to us maybe next year. My dad wants to make sure we can take care of my mom if/when he would pass away and he wants them to be close to us to help with the grandkids. His idea is this: he doesn't want his name on anything. He plans to sell his current house and use most of the proceeds of it to add to our down payment of a larger house. Then, when they retire, they will use their retirement income to "rent" from us, and we can all live together in a larger house than we'd be able to afford on our own. That way, they can be right there to help with the grandkids, and when my dad passes away, his life insurance would support my mom staying with us or pay off any mortgage left on the house.
Has anyone done something like this or is it totally weird? I love my parents, but I'm not sure I want to live with them the rest of their lives. It seems sorta depressing to go about this in the expectation of my dad passing away in some unknown future. He's in regular health, so who knows, he might live another 20 years.
I'm torn between liking the idea of being able to buy a much larger house and having babysitters all the time, and liking my freedom and personal space in my own house. And what if we argue about how to run the household? It might be too much of a test of patience.
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What about buying a 2-unit in this manner? Might be hard to do in the nice parts of DFW, though. But that way if they buy stupid crap or have different standards of cleanliness it isn't your business or problem.
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What about a duplex, or at least a house with an are you can convert into a totally separate living space? Shared expenses, easy to visit and do things, but with a place for both parties to retreat and manage things how they like.
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Agree on a duplex.
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Many people around here do this, but the main house and the apartment are separate. They do not have any shared entrance, or living space, that is the only way I would entertain the idea.
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Many people around here do this, but the main house and the apartment are separate. They do not have any shared entrance, or living space, that is the only way I would entertain the idea.
+1. I agree that separation is crucial to make this work.
We are considering moving to a home with a separate apartment/casita, so it would be available to rent out, for our son to visit, or a live-in caregiver some day.
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I know I would get tired of having an in-law next door pretty quick.
Nice to have them close so you can see them frequently and help each other out with things, but you don't need them involved in every aspect of your life, which they could be if under the same roof (including a duplex).
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I think duplex idea might be worthwhile. Also you noted that your parents does not want their names on the title of the home, but with your parents name on title, you and your parents might be able to save on some tax (seniors get more property tax breaks). Property tax in Texas is pretty high so something to think about and look into.
Good luck