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Should I Buy My Parents’ House?
If you’re thinking about buying your parents’ house, there are many things to consider before moving forward. Buying a home is a substantial financial decision. And when a big money decision involves family, it should be carefully considered.
What are the Reasons You’d Buy Your Parents’ House?
You might have multiple reasons for thinking about buying your parents house. Here are the few common reasons to make the purchase:
Sentimental value. Your childhood home and “things” can bring up memories and create a sense of nostalgia — making them more difficult to let go. You might consider buying your parents house to keep it in the family or preserve the memories.
Financially help parents. This is a common reason people give for buying their parents’ home. Elderly parents, in particular, might have problems getting by on a fixed income.
Discounted price (instant equity). Sometimes people buy their parents’ home because they are able to purchase it for less than market value.
Investment (rent/flip). Many people buy their parents’ home as an investment — so they can rent or flip it for cash flow or profit.
