I am saving to buy a house in Greater Denver. I am very discouraged with how expensive this market is
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My dad called me this morning. He is selling his house (South Carolina). He wants to use half the money from the sale of his house to buy a house (3bed, 2ba) here for me but we would both live there. Upon his death, I would own the house. I don’t know if it’s that simple.
I am in shock with this idea. It would speed up me not having to rent but it would commit me to living with my dad again. He is getting older but is still able to live on his own. I am not opposed to this idea.
There are just a lot of things to consider.
Please help me talk this out!Jennifer
I feel like most people have covered the fact that a duplex or similar would be ideal for this, so I am just going to add to look into long term care and care insurance.
Often if I person has to go into a nursing home and can’t pay for it, they are required to sell their house before they qualify for Medicaid/Medicare to cover it, so you need to make sure you are both protected should that need arise.LindseyDave
You need to have strong boundaries and legal protections.
What happens if in a year you don’t want to live there or with him? What happens if a medical event happens and he needs full time care? What happens if the two of you have a falling out?
Entering into legal agreements with other people can become very tricky.Memo
My experience tells me he does not want to be alone. I learned older folks want/need to be around trustworthy & communicative people. Him being with you will make it easier for both of you in the long run. Colorado to SC is a long distance.
Another plus, his desire to move to your town. Elderly people usually fight leaving their city & state.
God Bless You.Sabrina
I think it’s a wonderful idea as long as the relationship is healthy. I think multi generational households are something that would help more families be financially successful.Renee
A lot of questions that you need to answer. How old is your dad and how long do you think he will live? How old are you and if he is in failing Health in the future, would you want to take care of him?
If he buys the house, and you two do end up living together, I think the house should be in your name.
If he needs care in the future and has to go on Medicaid then they will look back 5 years to see how the money was spent and at the house is in his name or he somehow deeded it over to you within 5 years of needing medicaid, then you lose the house.
Just some things to think about.Theresa
If he requires long term care at some point, the house will need to be used to cover those costs, so it’s not without risks. Talk to an elder law attorney experienced with real estate. If your dad has plenty of other assets, tge risks are much lower.
This could be a great idea because you would inherit the property at its stepped up basis, eliminating capital gains. But you have to think about how well you get along. Multi generational homes used to be very common but you need to base the decision on your situation and if living with dad again could be a problem or a blessing.
While living with him, you could continue saving for property should there ever be a falling out. Make sure its all properly documented so no other heirs or creditors would have claim after his passing.Carin
Maybe look for a house that has space for a small apartment to be built, or already has one. That way you both have your own separate living spaces. Then at some point in the future, you might be able to rent out the apartment for a little extra income.