Skip to main content

Should I buy 50% of the family vacation home

Hi all, let me preface this by saying that I (22F) am a rookie real estate agent (1y) and doing pretty well for myself. Once clients have decided to buy/sell real estate, I make it happen. But I wouldn’t know whether they should or shouldn’t buy, if that makes sense. I’m still learning.

Onto the actual situation:

TLDR: I may have an opportunity to buy 50% of the family vacation home on the French Riviera. I would then own it jointly with my grandpa, and after his death, with my dad and aunt. It would however be my primary residence while still being their vacation home (big plot of land, many opportunities). Before I broach the subject with my grandpa and his brother, I want to be sure of myself.

Long version:

The house used to belong to my great grandparents, and currently is owned by my grandpa and his brother. They are very attached to it.

Following recent conversations with my grandpa’s brother’s kids (the heirs to his current share), it appears that none of them are interested in keeping the house when their father passes away. There are 4 kids on that side of the family. Only one of them uses the house for about 1 week a year, but they have expressed that they would rather rent someplace while on holidays, than keep this particular house. The other 3 don’t come at all anymore, since my great grandparents passed. None of them would have the money to buy the others’ shares.

Hence why I believe that if I were to approach my grandpa’s brother and offer to buy him out, he would consider it. I should also mention that my grandpa’s brother has his own house + another vacation home that is solely his, so they would still have a vacation home. Just not this one.

The house is pretty much a tear down at this point. It is impossible to rent out in this condition, and we only tolerate it because it’s ours (has been for generations). My grandpa and his brother have opposed most renovating/restoring ideas we have had, so it’s only getting worse. BUT it sits on a very nice piece of land, the beach is a 2 minute walk, and new builds on similar parcels are selling for around 1.2M euros. Renovated older houses are selling for around 800k. I have loosely estimated our house in its current state to be worth around 550-600k (essentially the price of the land). I would be able to afford half of this in about a year with a mortgage. However, it would have to be my primary residence while still allowing my dad and aunt to enjoy it as their vacation home. I’m thinking of putting a trailer/tiny house on the land and leaving them the main house for now.

What have I not considered? It seems like a pretty good way to keep the house in the family while allowing those who don’t care about it anymore to be bought out. It will be a nightmare if my grandpa’s brother passes and his 4 kids inherit and hold on to it while not doing anything to keep it afloat, which is why I’m trying to be proactive. Of course I would not be sole owner, and my grandpa/dad and aunt would have to sign off on every thing I want to do to the house/land.

Thanks so much for your help and sorry about this terribly boring novel I just wrote!

submitted by /u/ocelb
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/pds55l/should_i_buy_50_of_the_family_vacation_home/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Co-signing as non-primary resident - effect on size of required downpayment & first time home buyer status?

Contemplating co-signing on a house with my mom and splitting the mortgage payment. I currently have a significantly higher income and much better credit than her. I'm looking at potential home costs and related downpayments but have difficulty using some of the online estimators. From my perspective, this would be somewhat of an investment purchase (I intend to stay in my current location in a different state and contribute to the mortgage), however, for my mom, this would be a primary residence. For purposes of the downpayment size and the type of mortgage arrangement, would it be an investment property or a primary residence? Many thanks for any help. submitted by /u/piercalicious [link] [comments] source https://www.reddit.com/r/RealEstate/comments/km4hvl/cosigning_as_nonprimary_resident_effect_on_size/
Post a Comment
Read more