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Old 10-05-2014, 07:24 PM
 
5,643 posts, read 15,658,817 times
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Thanks for the thoughts, all. I think I won't charge them rent, but they will need to keep paying their land mortgage and I'll buy it from a few years down the line.
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Old 10-05-2014, 07:57 PM
 
8,583 posts, read 15,960,734 times
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Quote:
Originally Posted by doss1 View Post
Thanks for the thoughts, all. I think I won't charge them rent, but they will need to keep paying their land mortgage and I'll buy it from a few years down the line.
What if they want to move?
What if they want to sell the land?
I assume you are an only child..
What if they can't keep up the land mortgage..
What if they prefer to do what they want on the land..they bought it for some reason..

It doesn't sound like you are helping them, it sounds like you see an opportunity for
a great deal...


What reason would they have for moving into a house you own on the land they own
if they already have a house..
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Old 10-05-2014, 09:57 PM
 
741 posts, read 909,492 times
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Quote:
Originally Posted by MrRational View Post
For you? Don't do business with family.
MrRational speaks the absolute truth here. Do favors for family (that you love and want to help) but never, ever do business with family.

With this said, if you are in a solid enough financial position to buy as a retirement place *and* are willing to let them live there free if events dictate, then go ahead. There is nothing wrong with helping family but never, ever do business with them or involve them in your income planning, particularly if you're relying on them to make payments on an asset that you yourself are in debt for.
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Old 10-06-2014, 03:18 AM
 
Location: Southern New Hampshire
10,026 posts, read 17,944,833 times
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Quote:
Originally Posted by doss1 View Post
Thanks for the thoughts, all. I think I won't charge them rent, but they will need to keep paying their land mortgage and I'll buy it from a few years down the line.
I'm a little confused ... if they are still paying their land mortgage, then THEY still own the land so how would you get a mortgage to build a house on THEIR land? So when you say "I think I won't charge them rent," I guess that's because you have nothing FOR them to rent?

Out of curiosity, why did your parents buy the land in the first place -- did THEY plan to build a house on it for their retirement? That's a pretty big payment for 25 years unless they were planning to actually USE the land in the relatively near future.
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Old 10-06-2014, 06:10 AM
 
6,720 posts, read 8,342,737 times
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Quote:
Originally Posted by karen_in_nh_2012 View Post
I'm a little confused ... if they are still paying their land mortgage, then THEY still own the land so how would you get a mortgage to build a house on THEIR land? So when you say "I think I won't charge them rent," I guess that's because you have nothing FOR them to rent?

Out of curiosity, why did your parents buy the land in the first place -- did THEY plan to build a house on it for their retirement? That's a pretty big payment for 25 years unless they were planning to actually USE the land in the relatively near future.
He was going to buy the land from them and the build a house he would rent back to them, for the same cost they were already spending.

OP- It's not a good idea to mix business with family. It can create drama where there wasn't any to begin with.
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Old 10-06-2014, 07:12 AM
 
13,721 posts, read 19,145,394 times
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Originally Posted by CCc girl View Post
Why did they buy the land?

IMO nobody is going to want to rent a house on ten acres. Too much work. It sounds like a rural setting. Very difficult to find renters.
I see you live in upstate New York. Maybe people think differently there. I would LOVE to live on 10 acres and so would a lot of other people. Not everyone likes living like sardines in a city. I would say that is especially true in Texas.

To the OP - what makes you think they would want to sell THEIR land to you? It's their land that they bought. They have a paid-off house on it. What advantage is it to them for you to buy their land? And if you buy their land, won't they have the money from the sale of the land? My guess is they don't want to sell it. I'm a little younger than your parents, but I can't imagine why I'd sell my property to my 20s-30s year old kids.
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Old 10-06-2014, 12:01 PM
 
Location: Southern New Hampshire
10,026 posts, read 17,944,833 times
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Quote:
Originally Posted by Meyerland View Post
He was going to buy the land from them and the build a house he would rent back to them, for the same cost they were already spending.
Yes, I understand that he said that was his (original) plan ... BUT I was specifically responding to the post in which he said he (now, new plan) wouldn't charge them rent (presumably on this house he still wants to build) but they'd have to keep paying the land mortgage. In other words, his parents would still own the land (as they do now). What I was confused about was, how could he get a mortgage to build a house on someone else's land? So THAT is what I was asking (since he said he would get a mortgage for the house he was going to build).

Quote:
Originally Posted by luzianne View Post
To the OP - what makes you think they would want to sell THEIR land to you? It's their land that they bought. They have a paid-off house on it. What advantage is it to them for you to buy their land? And if you buy their land, won't they have the money from the sale of the land? My guess is they don't want to sell it. I'm a little younger than your parents, but I can't imagine why I'd sell my property to my 20s-30s year old kids.
Hmmm ... I took the OP to mean that the parents have a house somewhere now, plus they have 10 acres of land in Texas with no house on it (the OP wants to build a house on it) ... maybe I read that wrong too. Hmmm. Usually my reading comprehension skills are pretty good ...

Quote:
Originally Posted by Meyerland View Post
OP- It's not a good idea to mix business with family. It can create drama where there wasn't any to begin with.
Agree ...

And I'm also curious as to what his PARENTS' plans were for the land ... maybe he will come back and answer these questions.
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Old 10-09-2014, 01:36 PM
 
11,113 posts, read 19,436,256 times
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Quote:
Originally Posted by doss1 View Post
Hi all,
My parents currently pay about $600/mo in mortgage payments for 10ac of land in Texas (5 years paid of 25, thus far). I am thinking of buying it from them and paying for construction of a home on it in which they can live in full-time and that I can use as a vacation home twice a year. The home is going to be about 900+/mo (30yrs) and I am thinking of asking for 600/mo for rent (which is what they would have paid anyways for the land mortgage).

I plan to retire and move back to Texas and live in it after my folks are gone (or sell it and move elsewhere).

They are in their early 60s and I am 34.

Is this a good idea? I guess what I am asking is....what would be a good incentive for my parents to agree to go with this plan since more would go to rent in the long run than their retirement savings? Their house has been paid off (I'd say they will probably get 120k-150k for it). Perhaps rent should be decreased from 600 to 400 to make it more worthwhile for them?

Just looking for some clear thinking and advice from folks in this forum. Thanks.

If I were your mother, I would tell you to get your butt to church.

If you can afford to buy the land, build a house, move to TX, use the house for "vacations", reap the appreciation you will gain over the years, while you make paying tenants of your parents .... you are one selfish dork.
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Old 10-09-2014, 04:06 PM
 
Location: southwest TN
8,568 posts, read 18,042,851 times
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Quote:
Originally Posted by luzianne View Post
I see you live in upstate New York. Maybe people think differently there. I would LOVE to live on 10 acres and so would a lot of other people. Not everyone likes living like sardines in a city. I would say that is especially true in Texas.
The poster you responded to lives in upstate NY - as you noted. What you may not understand is that most of upstate NY is country - with towns very far away from each other and they are small towns to boot. In fact, parts of upstate NY are more country than we are in aggy-land of west TN and northern MS.

However, her point is valid - as the OP's parent age, they may not be comfortable living out of town.
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Old 04-30-2015, 07:28 AM
 
4,899 posts, read 6,189,577 times
Reputation: 7472
Quote:
Originally Posted by stan4 View Post
If it were me, I would just let them live there free.
Someone occupying the home and land is a good deal for you.
Then again, I wouldn't dream of charging my parents for anything.
Quote:
Originally Posted by QuilterChick View Post
If I were your mother, I would tell you to get your butt to church.
If you can afford to buy the land, build a house, move to TX, use the house for "vacations", reap the appreciation you will gain over the years, while you make paying tenants of your parents .... you are one selfish dork.
^^^Wow, they are so old - 60?
Did the OP ask or talk to his parents about this great plan?
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