So the in-laws (mid-to-late 70s), through a lifelong series of bad choices compounded by some bad luck, are about to be foreclosed on and will need to move. Their only income is Social Security, and in their county (Palm Beach) this just gets them under the wire for some senior-priced apartments.
BUT - condos down there are stupid cheap - like a 2 BR for 45K. Not as nice as the place they currently live, but a better choice than they could afford rent on, and a better choice for many reasons than having them come live with us (mid-Atlantic) or their daughter (NYC metro). I actually saw some LARGE condos selling for less than 10,000 dollars, not sure what THAT’s about. I assume there’s something Very Scary about them.
We can come up with that down payment - it’ll mean selling a little stock, but we could do it and still be in-budget for what I’d figured we can do w/o jeopardizing the kids’ college funds. The monthly payment would then be 300ish (taxes and mortgage) which they could afford, the HOA fee puts it out of their price range but we could chip in on that (and the siblings could chip in a little also). We’re literally the only ones in the family who could qualify for the loan, as well.
The places they’re looking at: one is supposedly partly in a hurricane evacuation zone but not the whole place. What kind of questions should we be asking about that?
We’d be looking at a 55+ community. We are not quite old enough to purchase such a place (though we’re close), and I’d be strongly inclined to insist on the place being in our name either fully or as co-owners. Pitfalls of that approach? We’d want to make sure the place was safe from judgments against the in-laws (they filed bankruptcy last year and have no assets at all); would having them as co-owners be an issue?
What logistical / tax / financial issues aren’t we thinking of? I suppose we could qualify to deduct the mortgage interest (though if the in-laws are paying the mortgage that seems wrong); should we try to treat it as a rental property?
This is in Palm Beach County (Boynton / Delray / Fort Worth etc.) if anyone knows the general area. Any thoughts on what the real estate market is projected to be doing over the next few years? I don’t mind going in with the assumption that we’d be paying the down payment and eventually have to let it go and lose that money, I just don’t want to be stuck with having to basically pay money to unload the place when the time comes.
As a side note: one of the reasons I want them to be paying the mortgage themselves (directly to the bank), even if it’s in our name, is the experience of a family member. Her parents were living in a condo owned by her sister and the sister’s husband. They were paying the sister/husband rent - and the sister/husband quit paying the mortgage. Basically stealing money from their parents - who were evicted of course when it foreclosed. Nice people - NOT. The husband passed away not long after that, and my only reaction was “Good”.
And the self-absorbed whine: We’re literally the only ones in the family who’ve never filed for bankruptcy. In one case it was after a disastrous string of ill-health. In the others it was after strings of bad decisions. So yay - our prudence is rewarded by costing us money. /self-absorbed whine.