Invest in Real Estate – buy house and Rent to family member???

[JustLurking]

This would not be in your parents’ best interest. One million dollars is not “a big fat pile of money” if you plan to live on it for the next 30 years. There are just too many unknowns. Major medical and/or nursing home expenses in the future could eat through that in a hurry. Your “annuity” may not be enough for them. Then what?

I agree with UCGal – this also strikes me as pretty selfish. I cringed when I read the part about how the money is theirs, but will be yours in 30 years. Yikes! It is NOT your money. It may never be your money. They may NEED it. It is THEIR money, for THEIR needs – not yours.

[scaredyclassic]

1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while.

[scaredyclassic]

1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while.

[scaredyclassic]

1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while.

[scaredyclassic]

1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while.

[scaredyclassic]

1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while.

[barnaby33]

Unlike the others I think the basic premise is sound. Yes it does have a twinge of entitlement to it, but compared to what I’m seeing in the world today, hell you should nominate yourself for sainthood.

The major risks are them needing most or all of the money before they die, a not insignificant risk. Of course if you buy at or near the bottom of the market, its not a problem because its all up from there! The problem is knowing you’ve reached it and being able to solidly convince yourself and your folks that its so.

Finally what you are talking about is an inter generational loan. They always come with strings attached. I know my father was going to loan me 25k to buy a house. When he found out I was going to buy a motor cycle he told me he wouldn’t help me buy the house if I did. Better know what those strings are, they can be more damaging than owing money.

Finally, weren’t you the guy who convinced himself a year ago to buy a new tract home in Temecula? (7th circle of hell) If so do you really think you are in a place to call market bottoms?

Josh

[barnaby33]

Unlike the others I think the basic premise is sound. Yes it does have a twinge of entitlement to it, but compared to what I’m seeing in the world today, hell you should nominate yourself for sainthood.

The major risks are them needing most or all of the money before they die, a not insignificant risk. Of course if you buy at or near the bottom of the market, its not a problem because its all up from there! The problem is knowing you’ve reached it and being able to solidly convince yourself and your folks that its so.

Finally what you are talking about is an inter generational loan. They always come with strings attached. I know my father was going to loan me 25k to buy a house. When he found out I was going to buy a motor cycle he told me he wouldn’t help me buy the house if I did. Better know what those strings are, they can be more damaging than owing money.

Finally, weren’t you the guy who convinced himself a year ago to buy a new tract home in Temecula? (7th circle of hell) If so do you really think you are in a place to call market bottoms?

Josh

[barnaby33]

Unlike the others I think the basic premise is sound. Yes it does have a twinge of entitlement to it, but compared to what I’m seeing in the world today, hell you should nominate yourself for sainthood.

The major risks are them needing most or all of the money before they die, a not insignificant risk. Of course if you buy at or near the bottom of the market, its not a problem because its all up from there! The problem is knowing you’ve reached it and being able to solidly convince yourself and your folks that its so.

Finally what you are talking about is an inter generational loan. They always come with strings attached. I know my father was going to loan me 25k to buy a house. When he found out I was going to buy a motor cycle he told me he wouldn’t help me buy the house if I did. Better know what those strings are, they can be more damaging than owing money.

Finally, weren’t you the guy who convinced himself a year ago to buy a new tract home in Temecula? (7th circle of hell) If so do you really think you are in a place to call market bottoms?

Josh

[barnaby33]

Unlike the others I think the basic premise is sound. Yes it does have a twinge of entitlement to it, but compared to what I’m seeing in the world today, hell you should nominate yourself for sainthood.

The major risks are them needing most or all of the money before they die, a not insignificant risk. Of course if you buy at or near the bottom of the market, its not a problem because its all up from there! The problem is knowing you’ve reached it and being able to solidly convince yourself and your folks that its so.

Finally what you are talking about is an inter generational loan. They always come with strings attached. I know my father was going to loan me 25k to buy a house. When he found out I was going to buy a motor cycle he told me he wouldn’t help me buy the house if I did. Better know what those strings are, they can be more damaging than owing money.

Finally, weren’t you the guy who convinced himself a year ago to buy a new tract home in Temecula? (7th circle of hell) If so do you really think you are in a place to call market bottoms?

Josh

[barnaby33]

Unlike the others I think the basic premise is sound. Yes it does have a twinge of entitlement to it, but compared to what I’m seeing in the world today, hell you should nominate yourself for sainthood.

The major risks are them needing most or all of the money before they die, a not insignificant risk. Of course if you buy at or near the bottom of the market, its not a problem because its all up from there! The problem is knowing you’ve reached it and being able to solidly convince yourself and your folks that its so.

Finally what you are talking about is an inter generational loan. They always come with strings attached. I know my father was going to loan me 25k to buy a house. When he found out I was going to buy a motor cycle he told me he wouldn’t help me buy the house if I did. Better know what those strings are, they can be more damaging than owing money.

Finally, weren’t you the guy who convinced himself a year ago to buy a new tract home in Temecula? (7th circle of hell) If so do you really think you are in a place to call market bottoms?

Josh

[UCGal]

[quote=scaredycat]1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while. [/quote]

Just a note on long term care insurance… It typically has a “lifespan” of 3-5 years. (Rates higher for the longer coverage.) If you live longer than the coverage – then… Oh well…

This can be a significant issue for someone with a debilitating, but potentially long term condition. Alzheimers comes to mind.

A coworker’s mom is in a nursing home with alzheimers. She’s only got 9 months left on her coverage. After that, whatever cash she has will go to cover the $10k/month rent.

My brother in law’s mom is in assisted living here in San Diego. She waited to start the coverage – even though she NEEDED it – because she didn’t want to outlive the coverage and be forced to move to a crappier place.

Long term care is expensive. Insurance for it is not unlimited.

As I said in my previous post – I’ve got a lot of experience with this because of my parents, my husbands parents, and various relatives parents.

Don’t spend your parent’s money because they may need it.

And it doesn’t sound like a great investment.

[UCGal]

[quote=scaredycat]1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while. [/quote]

Just a note on long term care insurance… It typically has a “lifespan” of 3-5 years. (Rates higher for the longer coverage.) If you live longer than the coverage – then… Oh well…

This can be a significant issue for someone with a debilitating, but potentially long term condition. Alzheimers comes to mind.

A coworker’s mom is in a nursing home with alzheimers. She’s only got 9 months left on her coverage. After that, whatever cash she has will go to cover the $10k/month rent.

My brother in law’s mom is in assisted living here in San Diego. She waited to start the coverage – even though she NEEDED it – because she didn’t want to outlive the coverage and be forced to move to a crappier place.

Long term care is expensive. Insurance for it is not unlimited.

As I said in my previous post – I’ve got a lot of experience with this because of my parents, my husbands parents, and various relatives parents.

Don’t spend your parent’s money because they may need it.

And it doesn’t sound like a great investment.

[UCGal]

[quote=scaredycat]1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while. [/quote]

Just a note on long term care insurance… It typically has a “lifespan” of 3-5 years. (Rates higher for the longer coverage.) If you live longer than the coverage – then… Oh well…

This can be a significant issue for someone with a debilitating, but potentially long term condition. Alzheimers comes to mind.

A coworker’s mom is in a nursing home with alzheimers. She’s only got 9 months left on her coverage. After that, whatever cash she has will go to cover the $10k/month rent.

My brother in law’s mom is in assisted living here in San Diego. She waited to start the coverage – even though she NEEDED it – because she didn’t want to outlive the coverage and be forced to move to a crappier place.

Long term care is expensive. Insurance for it is not unlimited.

As I said in my previous post – I’ve got a lot of experience with this because of my parents, my husbands parents, and various relatives parents.

Don’t spend your parent’s money because they may need it.

And it doesn’t sound like a great investment.

[UCGal]

[quote=scaredycat]1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?

prescriptions.

a movie once ina while. [/quote]

Just a note on long term care insurance… It typically has a “lifespan” of 3-5 years. (Rates higher for the longer coverage.) If you live longer than the coverage – then… Oh well…

This can be a significant issue for someone with a debilitating, but potentially long term condition. Alzheimers comes to mind.

A coworker’s mom is in a nursing home with alzheimers. She’s only got 9 months left on her coverage. After that, whatever cash she has will go to cover the $10k/month rent.

My brother in law’s mom is in assisted living here in San Diego. She waited to start the coverage – even though she NEEDED it – because she didn’t want to outlive the coverage and be forced to move to a crappier place.

Long term care is expensive. Insurance for it is not unlimited.

As I said in my previous post – I’ve got a lot of experience with this because of my parents, my husbands parents, and various relatives parents.

Don’t spend your parent’s money because they may need it.

And it doesn’t sound like a great investment.

[Author]

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