TL;DR I want to live where my dad currently lives (my hometown) but there’s no way I can afford it in today’s market. He will be living there whether I do or not - He will die of old age there either in the current house, or in the father-in-law suite of my house if the property becomes mine. How can I assume ownership of the property for less than the market value in a way that is fair and legal within the next 5 years? I have a 5 year plan to get back to my hometown. Do I need my name on the deed? Mortgage? Do I just buy it for under market value and get penalized in taxes? Help!
I would like to move back to my hometown (I currently live across the country.) The thing is, since I left, my town specifically and towns around it have become a very desirable, up-and-coming place. It’s one of those places on the “fastest growing cities” lists. For the sake of privacy, I won’t say where, but the area is exploding and people are moving in from all around the US. People with money. The wealthy entities who are already established in my hometown are improving it in every way - traffic, schools, culture, etc. It was already a good place to live, now it’s a great place to settle down.
My dad is in his 60s, I’m in my 30s. My dad lives in the house he and his mother lived in, and when she died (within 10 years ago, when the price was reasonable) he bought out his siblings and now he still lives there and it’s his house. I would like to move back to my hometown, but there is just no way financially I could do it now, based on the market. I should also mention that the location of my dad’s house is in a highly desirable location in this highly desirable town. We could’ve never planned it this way. If the house were to go on the market today, it would be sold at a high price only to be bulldozed down and a considerably larger and nicer home built in its place.
I have only recently and very gently proposed the idea to my dad that perhaps somehow my family could move back to my hometown and live where he lives now. I planted a seed and I’m watering it. He would love for us to move back. I don’t think either of us knows how this could come to be in a fair way. We would have to have some kind of arrangement where the property could become mine (and my husbands) for less than the current market value. He would not give me his property for free and I would not expect him to. He wouldn’t want to leave and I don’t want to kick him out by any means - I would like to have a father-in-law suite for him so he still has his privacy and independence. I have a husband and kids and the current house would not suite us, and I would need to renovate/gut/add-on to the house for it to suit my family.
My dad carries a mortgage though he does not need to, it just makes financial sense to him. He bought the house only a few years ago for half of what it would cost me to buy it today. And, today, in addition to buying it, I would need to do a major overhaul to it to suit the needs of my family - essentially building a new home with an attached father-in-law-suite (which could be a portion of the existing house).
My dad isn’t going anywhere. He will die in this house whether it’s mine or his. He is not trying to cash in on the advantageous growth of the area and desirable location of his house. He is either selling it to me or no one, and he will die of old age there. I’m not trying to screw him over. I just want to live near my family and current prices would push us 30 minutes away.
Do I need to be put on his current mortgage? A deed? Buy it the old fashioned way for below the market value and get penalized on taxes? Help!
I realize this is more than a real estate question and I would be grateful if someone could point me in the direction of where else to ask this question. Do I need help from an estate planner? Real estate law? I don’t even know. Thanks
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source https://www.reddit.com/r/RealEstate/comments/1dyul29/my_dads_property_becoming_mine/
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