Yes, you ARE missing something. I’m assuming your S is straight and would want a traditional family. You are missing the fact that it takes two people to produce your grandkids. You may buy this house for your S, but that doesn’t mean that when he marries his wife will want to live in it. So, forget all those plans about your S living near his parents so his parents can be near their grandkids. Hey, it may work out that way…but the odds of it happening are not high enough to make it a wise plan.
See his future WIFE gets a say in where they live. And, she may not want to live in the house or townhouse that H’s mommy and daddy bought for all sorts of reasons. She may have a job that isn’t within easy commuting distance or a job with a government agency that requires her to live within the municipality she works for or she may have parents she wants to live near or…
If I had to give odds on something like this–I’d say the odds are better than 50/50 that if you do buy the house for your S, some day when he marries or a bit later after he and his wife have kids, they’ll sell it and use the money as a down payment to buy a house somewhere else.
I think the idea of buying it partly in his name and not telling him is frankly nuts. If something goes south (large damages not covered by insurance like a major mold problem or something, lawsuit filed by someone against the owners, etc), suddenly your kid is on the hook for a transaction they never agreed to. It is deceitful. Also, I doubt you could do it in most states without his signature (good thing).
Joining the bandwagon of voices with the “if you want to buy a place as a rental investment, go for it, but dont buy something for son, especially without his input.”
When DS took a job in FL many years ago, it was when the market was really bad and we knew we could get a great deal. DS was interested in a condo, but there were many foreclosures in the building, and if there were HOA assessments, those living there and actually paying wer going to have to pick up the slack for the foreclosures and the rental property whose owners werent being reliable. We’d anticipated using it as rental property or our own getaway place if he moved, but decided not to purchase for/with our son (he rented). It was the best decision–NOT to buy. DS ended up moving after a year and a half or so (his employer in FL fell victim to the bad economy then) to another state (and he now lives across country and is married). Is the condo we didnt buy probably worth more? Probably… But the hassle factor we didnt face was well worth the difference, and DS didnt havve his name tied to a mortgage. He was able to buy a place that he and his now wife chose.
It is amazing how much house one can get if you go far enough out into the suburbs.
There are lots of McMansions languishing on the market. It makes sense to me that the under 30 crowd might use Uber to get around, AirBnB to travel instead of hotels, and prefer smaller houses rather than McMansions. It could also be that the under 30 crowd is wary of debt after paying for college.
I’m going to shop around a little. I love my current place but I’ll look around just in case something too good to pass up turns up. I’m not inclined to move at all. I’d consider buying and renting but I strongly prefer investing in financial assets not real estate. The right house or TH, at the right price, is the right way to go. I detest renting. I like building up equity but you all are right you can’t buy unless and until you know what city someone is going to live in and that is a function of what job one accepts and when and if he gets a significant other in his life that is another wildcard in the deck.
In case it is of interest to anyone, you can get a really good property for the mid-200’s easily in Central FL and you’ll paying $2K or $2.5 property taxes.
A TH for mid 200s with low taxes sounds like a great deal. But it’s an entirely separate issue from your son. Don’t use his situation to drive your investment decisions.
I think we all do a disservice to our kids when we get too involved. He would miss valuable learning lessons on all fronts if you do this for him. Learning about money, learning about all the steps involved in buying a house, then learning how much it costs to own a house, to sell a house etc. These early lessons/errors will help him in his future to not make similar mistakes. Best to learn the lessons when the amounts are smaller with that first house than in 10-15 years when he is buying another house.
I like to surprise my kids every now and then with a big (to them) unexpected check. They appreciate it so much and they know its a one time thing so they don’t count on it as part of their budget.
It would be fun to do our financial life all over again and try and not make as many errors but it doesn’t work that way.
Ya gotta let him earn his stripes and allow him to earn the pride of doing it on his own.
I’ve been watching the Tampa and Orlando housing markets for over ten years (I watch the Atlanta one, too. I’m a little obsessed).
Orlando especially, and Florida in general, are THE WORST boom-bust areas for real estate. I remember Tampa in 2004 was just insane-the prices were ridiculous. I also remember Orlando in 2011. They couldn’t give houses away.
My best advice to you is don’t get greedy when you look at real estate, and don’t use your kid as an excuse to buy property. It should be a really rational decision, and second homes don’t enjoy the same tax breaks as primary residences.
A LOT of people lost both their first and second homes during the recession because they overextended themselves and assumed that the houses would continue to rocket ship appreciate faster than their debt accumulated.
You’re getting older-be careful about asset allocation and the mental and physical costs associated with complicating your life with another home and possible co-ownership. If it were me I’d be dumping that capital in a tax protected retirement account.
my rule is that I have my own roof and walls…I do not need 5000sq feet or 5 acres…just no neighbor above me,below me or shared walls.
I had very loud neighbors, smoking neighbors…smoke smell came threw ceiling somehow (separate AC) people who do not keep up their stuff that effects you…etc…
IMO get a house even a small one…but avoid townhouses and apartments.