DCMark

The just changes the equation a bit. The money wil be sitting in the house, which will be empty most of the year. I am not sure what motivation they will have for throwing money away. That amount of cash is even a conservative investment would likely way outperform a house with negative cashflow (you still have taxes and upkeep) that sits empty many months per year.

HunterGreen

We/they just have the opportunity to buy a house very close to our house where they, as well as other family and friends who want to visit us (they must love me a lot Ray, being in Ohio and all ) can stay and have their privacy, as well as us having our privacy - not to mention being able to keep somewhat living our normal life when visitors are over, very important with kids.
I can understand why some people feel it would be throwing away money, and to that I can only say that I am greatful to have grown up in a family where money wasn't the most important thing - which got us through a lot of tough times when there wasn't any. And now there is some, and we're not sitting on it. Something my husband is still trying to get used to this concept but I think he's liking it.... lol.

Elaine

Rete

Depends on the area of the country you live in, I suppose. Here a mother/daughter house is one that has two fully equiped living areas with separate entrances. My sister and my parents have lived in two such type homes over the last 30 years. In some areas it would be considered a two family, i.e. the larger living space would be the main parts of the house with an income apartment (usually a one bedroom deal) in the lower part of the house. Again in some areas that might be the basement but not a below ground basement. My sister's and brother-in-law's first home was like that with our parents apartment with living room, large eat-in kitchen, bath and bedroom and terrace on the bottom portion of the house with a separate entrance and my sister's two bath, three bedrooms on the upper two stories of a single structure home. Since my parents lived there and there was no lease, they didn't have to declare anything as income.

Here in Westchester County, NY many old Victorian homes are split up into several apartments for income purposes with the owner living in the larger area of the converted house.

My friend has a timeshare with the Marriott and he loves it. He usually stays in Florida for two weeks and then later in the year he will go to Puerto Rico or like last year to Hawaii. He swears by it. I'm only familiar with what he says about it as I've never experienced it myself.


Rete

Ray

I like Rete's idea ... either have an extension apartment built on to your house ... or with the help od parents buy a bigger house and convert part of it into a separate apartment ...I'm sure the main reason your parents want something is to be near you .. when they visit ...the investment thing was just a reason to give you .....

snowbunny

My in-laws already have enquired if I could build a second dwelling (aka guesthouse) in my back yard. There are deed restrictions AND city code provisions which prohibit this, but I also know of people who have gotten around same.

fatbrit

Round about there -- not read up on it in a while! On a practical note, it also means that if they sell the house, a certain proportion of the money may be held in the escrow account until the IRS clears it.

HunterGreen

Yeah but not that near...

Unfortunately we do not have the possibility to add on to our house, and we also don't want to move....

Keep talking, we'll get there.

Elaine

snowbunny

I don't think it is possible to claim that a house is one's primary homestead if one is non-resident in the US. Therefore, tax would have to be paid on capital gains. On the other hand, capital gains tax isn't 100% or more.

fatbrit

I believe so. It's an area that very occasionally impinges on my work -- but I just tell 'em to go find a tax adviser!

Ray

Ok .. buy a house in Florida with all the other muppets ... and you both visit
at the same time .....