Buying housing for in-laws

[Anonymous]

We did this for my father in law. He doesn’t contribute anything toward the cost though. We thought he might pay some utilities. Nothing.
So be prepared to absorb the entire cost because if they can’t contribute, you can’t relocate them very easily.

[Anonymous]

We did this for my mom in 2021, and it’s worked well so far. She covers the mortgage, taxes, insurance, and utilities. She doesn’t pay market rent (it’s probably $700–$800 below) but if rent is below market, you should think about how repair and maintenance costs will be handled as you will have less of a buffer for those kinds of expenses.

[Anonymous]

They should be signing up on waitlists for low income senior housing in your town/city/county NOW. It is usually a multi-year wait, but they are generally safe and clean. Sounds like they will qualify given low income and assets.

[Anonymous]

Anonymous wrote:Don’t ask for rent money.

+1 assuming it's your M/FIL, don't ask for rent. Just let them live there

[Anonymous]

I think if you do this to help the in law, it’s a good idea.
If you do it thinking this is investment, it’s a bad investment.

[Anonymous]

A better “investment” is putting an addition on your home or ADU so they can live on the same property as you.

[Anonymous]

Anonymous wrote:A better “investment” is putting an addition on your home or ADU so they can live on the same property as you.

But then you have to live with them

[Anonymous]

Just remember, OP, that if you rent for substantially below market you can’t claim any of the expenses as deductions on the rental income and all of the income becomes taxable. You’re only permitted to give a “good tenant” discount. Look it up.

[Anonymous]

Anonymous wrote:In-laws rent, spend around 2k/mo. They are paycheck to paycheck, both working, zero savings or retirement beyond SS. Do you think it could be a good move to buy a place we can easily afford (a cheap 2 bedroom somewhere safe), and then they can pay us rent (not necessarily the full cost)? I worry about their ability to maintain housing once they cannot work, and don't want to be on the hook for finding them a place, scrambling, helping pay rent and basically wasting all this money. My thinking is that if we buy them a place (which would be our property, not theirs) at least it is an investment we can control.

No, of course not. On Dcum the in-laws are supposed to buy the house for you (or at least cover the down payment), NOT vice versa.

[Anonymous]

Does your spouse have siblings? One thing you have to think about is setting this up so that the siblings don't twist this around and make it sound like you are taking advantage of them.

That said, for a while I was dating someone whose mom was not going to have enough money when she retired and one solution my then boyfriend and I discussed was him buying a place for her to live but with him owning it (and maybe us owning it if we were married) so that we weren't just throwing money away.