Why And How To Buy A Home For Older Retired Parents
Posted on: 13 May 2021
Do you want to help out your parents as they age and make sure they can maintain a reasonably comfortable life in retirement? One way some adult children and other family members do this is to purchase a home for their parents. How can this help everyone? And how can you go about it? Here's what you need to know.
Why Buy a House for Parents?
A family that can purchase a home for older family members reduces the risk for those on a retirement income. Because their funds aren't tied up in a home or a mortgage, parents have more liquid cash to pay for both normal monthly expenses and unexpected issues — things like medical expenses, repairs, and recreation. You know your older family members are safe and have a comfortable place to call home.
Those who buy the home also benefit in a few ways. They may receive a reasonable rent to pay the mortgage. That home can be an investment property that appreciates in value. They can also tap its home equity both for upkeep and upgrades as well as their own personal investment purposes. And the home won't be tied up in probate or subject to seizure, no matter what happens with the parents.
How Should You Buy This Home?
Before you start home shopping, make sure you know what you can qualify for. You may be able to qualify for an investment home or vacation home mortgage, but these can be tricky. Children buying a home for parents who can't work may be able to use special-purpose programs at Fannie Mae to buy a home although they don't live in it.
Then, look at homes for sale in the area to see how much you can afford. Assess what your parent's current home or apartment has and what they enjoy most (or least) about it. Use these as a guide to find homes that meet similar criteria with perhaps a few extra perks. Don't overextend, though, or you risk your finances as well as your parent's place to live.
Finally, armed with an understanding of your financing options and the price range you can afford, take your parents home shopping with you. Although you are financing the house, they will live in it — so all parties need to agree on the right place to buy.
Where Can You Start?
Ready to start planning a purchase of a home for your own loved ones? Start by consulting with an experienced real estate agent in your area today. Together, you can conquer the challenges of this financially savvy move and find the perfect way to ensure the safety and happiness of everyone in your family.
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