Post by Kcthepouchh8r on Jan 15, 2016 10:21:35 GMT -5
Sorry I posted and ran without clarifying better what I was asking.
I'm pretty much the sole hope of the home staying within the family. My grandparents have three living children. None of them make sense due to current location/income/future relocation plans. I am The oldest grandchild by 12 years (and there's only four grandchildren). Second youngest is addicted to drugs and in and out of jail. Third youngest is just shy of 15. Youngest is 7.
My father confirmed my grandfather called him and asked how he felt about giving it to me as I have the largest family. I'm not guessing. If I don't take it they would sell and split the money.
School district is comparable. It would be unreasonable to have a $25/week grocery budget to maintain two homes so I would have to sell my current home and move my kids to a different school district; it's not like we rent and need a house. It would be unknown what kind of services my child with autism would receive; we get great services here.
My main question was would you uproot your kids and move into a style of home you weren't crazy about to keep a house your grandfather actually helped build within your family. I could potentially rent it out to gift to another cousin down the road but to me that seems like a big risk in the property getting damaged/lots of extra work for us/etc. It wouldn't be my first choice as I know a friend who lost most their savings due to rental property issues.
My main question was would you uproot your kids and move into a style of home you weren't crazy about to keep a house your grandfather actually helped build within your family.
My answer to this question is no, I would not. If he sells it and splits the proceeds as inheritances, then IMO everyone wins, which I guess is more fair than if the whole thing had gone to you anyway.
I know some people would say it's crazy to turn down a "free" house, but I'd rather live in a house I love in an area I want to be in and pay for it myself than live in a "free" house that I don't like in an area I don't love.
Renting out a house isn't that much work if you hire a professional property manager. We rent out our first home through a management company and their fee isn't that substantial and they deal with the tenants, we don't. All we do is pay the fee, they maintain an uncommingled trust account and provide us with a year end tax statement. We don't do any work and with a valid lease agreement in place, and a security deposit, the risk of damage is shifted to the tenants....sooooo, In that regard, I don't think that it would be that much extra work to rent it out and it is literally an investment and something for your kids down the road. I wouldn't turn it down but I'm not saying I would uproot to live in a house I don't love either.
Renting out a house isn't that much work if you hire a professional property manager. We rent out our first home through a management company and their fee isn't that substantial and they deal with the tenants, we don't. All we do is pay the fee, they maintain an uncommingled trust account and provide us with a year end tax statement. We don't do any work and with a valid lease agreement in place, and a security deposit, the risk of damage is shifted to the tenants....sooooo, In that regard, I don't think that it would be that much extra work to rent it out and it is literally an investment and something for your kids down the road. I wouldn't turn it down but I'm not saying I would uproot to live in a house I don't love either.
Yes, but there is the possibility of damages costing beyond the security deposit.
Pardon the likely stupid question but say the house needs a $20,000 repair? It's just 100% covered by your yearly contract?
Renting out a house isn't that much work if you hire a professional property manager. We rent out our first home through a management company and their fee isn't that substantial and they deal with the tenants, we don't. All we do is pay the fee, they maintain an uncommingled trust account and provide us with a year end tax statement. We don't do any work and with a valid lease agreement in place, and a security deposit, the risk of damage is shifted to the tenants....sooooo, In that regard, I don't think that it would be that much extra work to rent it out and it is literally an investment and something for your kids down the road. I wouldn't turn it down but I'm not saying I would uproot to live in a house I don't love either.
Yes, but there is the possibility of damages costing beyond the security deposit.
Pardon the likely stupid question but say the house needs a $20,000 repair? It's just 100% covered by your yearly contract?
That's a good question actually. There is always the risk of repairs beyond the security deposit so that's something to consider-the age and condition of he home and how long it's been since major repairs etc. Our rental home was built in 2005 and we had done some upgrades and things to it already so that risk was low for us. However, had the risk been there, we would have purchased a good home warranty plan-most cover appliances and other major work such as hvac and water heater etc. also, what is the mortgage, if any, in relation to the fair market rental value? We pretty much break even in that rent covers mortgage, property tax and gardener etc. if the house you get has a low or no mortgage, you could simply bank 6 months or so of rental income in your trust account as extra money for repairs and delay your rental income profits until you feel that you have an adequate cushion. Also with a good home warranty and insurance in place, you can substantially minimize risk of out of pocket losses. Plus, tax write offs if you claim a loss etc.
Sorry I posted and ran without clarifying better what I was asking.
I'm pretty much the sole hope of the home staying within the family. My grandparents have three living children. None of them make sense due to current location/income/future relocation plans. I am The oldest grandchild by 12 years (and there's only four grandchildren). Second youngest is addicted to drugs and in and out of jail. Third youngest is just shy of 15. Youngest is 7.
My father confirmed my grandfather called him and asked how he felt about giving it to me as I have the largest family. I'm not guessing. If I don't take it they would sell and split the money.
School district is comparable. It would be unreasonable to have a $25/week grocery budget to maintain two homes so I would have to sell my current home and move my kids to a different school district; it's not like we rent and need a house. It would be unknown what kind of services my child with autism would receive; we get great services here.
My main question was would you uproot your kids and move into a style of home you weren't crazy about to keep a house your grandfather actually helped build within your family. I could potentially rent it out to gift to another cousin down the road but to me that seems like a big risk in the property getting damaged/lots of extra work for us/etc. It wouldn't be my first choice as I know a friend who lost most their savings due to rental property issues.
If you gift to a cousin there are huge tax implications. Even skipping a generation could mean that you have to pay huge taxes.
I think it is dumb and dickish to take a house you don't want when it could be sold and split among everyone.
If you could easily walk away from a house that your grandfather helped build that he wishes would stay in his family I don't know what to tell you. While I don't disagree selling it would be for the greater good as it would financially benefit everyone I can certainly see why my grandparents would ideally like the home to stay within their family given the history.
I think it is dumb and dickish to take a house you don't want when it could be sold and split among everyone.
If you could easily walk away from a house that your grandfather helped build that he wishes would stay in his family I don't know what to tell you. While I don't disagree selling it would be for the greater good as it would financially benefit everyone I can certainly see why my grandparents would ideally like the home to stay within their family given the history.
I get this because H's family is the same way, except they expect you to buy the house. Luckily, he has a huge family so most of the homes are still in the family by choice.
Is is likely he is going to pass soon? If he's not sick, who knows what your life will look at when he does pass so I feel like you are borrowing worry. Plans may change with your parents or siblings, your kids' needs may change. If it is likely he will pass soon, I would explain what you said and say "We aren't in a position to move right now." I get that he built it and it has sentimental value to him ( and maybe you?) but if it's not realistic at the time, it's just not. Could he put in the will, something about right of first refusal and if no one wants it, sell and split evenly.
If you could easily walk away from a house that your grandfather helped build that he wishes would stay in his family I don't know what to tell you. While I don't disagree selling it would be for the greater good as it would financially benefit everyone I can certainly see why my grandparents would ideally like the home to stay within their family given the history.
I get this because H's family is the same way, except they expect you to buy the house. Luckily, he has a huge family so most of the homes are still in the family by choice.
Is is likely he is going to pass soon? If he's not sick, who knows what your life will look at when he does pass so I feel like you are borrowing worry. Plans may change with your parents or siblings, your kids' needs may change. If it is likely he will pass soon, I would explain what you said and say "We aren't in a position to move right now." I get that he built it and it has sentimental value to him ( and maybe you?) but if it's not realistic at the time, it's just not. Could he put in the will, something about right of first refusal and if no one wants it, sell and split evenly.
My grandmother is not in good health; she has a few years at best. When she passes my grandfather wants to be out of the house. He has no desire to live there alone.
It sounds like it would be really hard for them to say goodbye...but a hard goodbye for them does not mandate you uprooting your life.
It sounds like a wonderful gesture, but better for everyone if they would sell and split the inheritance?
I think it would be hard to tell grandpa no, but hopefully it will go to a family that will REALLY want it, and love it and care for it like he and his wife did all those years and your family can all benefit from the proceeds. That home had a good life with them and it may be time to say goodbye.
Post by dizzycooks on Jan 15, 2016 15:44:33 GMT -5
Can't I just ask how old they are? I realized you're speaking of your grandparents and neither h nor I have had grandparents in years. I find that fascinating actually.
Can't I just ask how old they are? I realized you're speaking of your grandparents and neither h nor I have had grandparents in years. I find that fascinating actually.