A record 64 million Americans now live in a multi-generational home, according to a Pew Research Center report, up from 32.2 million in 1950.
There are multiple reasons for this shift: the increasing cost of long-term care and, of course, rising housing prices. For those considering it, here are some tips.
Before You Look
It could mean having some difficult conversations early on and setting ground rules. Be sure to create a list of property requirements and to be clear on what are absolute must-haves for all.
You may also wish to draw up a “house prenup,” a document that addresses how the family would pay for the home and how you would cover expenses for the long haul. Having that can make things much less stressful because you have a document to refer to: ‘This is what we all agreed on: We all signed it.’
On the Hunt
Before you decide on where you wish to look for a home, a good real estate broker who knows the area well and is familiar with the multifamily markets can direct your search more efficiently. As you know, not all properties that sound great are accommodating for multiple generations.
Often times, in-law suites in homes are more of “an afterthought” so you may wish to start with the in-law suite during showings. You will know that if it doesn’t fit with what they are looking for, it wont matter if the rest of the house is beautiful.
Before You Sign Anything
Depending on the area, multifamily homes can come with tricky regulations on zoning, insurance and taxes. So, in addition to finding the perfect home, you may also need a good contractor to make necessary renovations. If so, it’s a good idea to find a lawyer who can help you figure out any potential zoning issues.
A lawyer can help with the “house prenup,” as well as, advise and recommend whether renting part of the home from one owner or sharing the ownership is better. It’s important to include instructions regarding the property in both Parent and Child estate plans, to avoid unintended consequences.
Making It Work
Making sure all parties feel comfortable in their own space can take some doing. It helps to talk it out. The key to living with your family may be establishing boundaries about living together early on as it’s not for everybody with so many personalities under one roof.
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For tips and advice, look for The Property Sisters segment each month in PPL.
They are always here to answer your questions:
Bridget Gricus (708) 814-6253, bridgetgricus@gmail.com
Eileen Kerlin Walsh (708) 448-5169, Eileen@KerlinWalshLaw.com
