BIG NEWS - I bought a condo ...

iVillage Member
Registered: 04-10-2003
BIG NEWS - I bought a condo ...
4
Wed, 05-21-2014 - 10:20am

You are all probably going to think I am insane, but here goes ... I bought a second condo :)

Okay I had to be dramatic, lol. What I actually did was buy a condo in a building that is being built and will be ready June 2017 . . . for my mother to live in.

My mom owns a small condo in a city adjoining mine and her building isn't the best. She and I were going through the numbers and her retirement income isn't going to be all that great so the goal was to have her pay off her condo by the time she retires so that she can live decently. Unfortunately while she is on track to pay off the condo, she isn't at all happy where she is. But she can't afford to move to a better area at the moment.

So she is going to stay where she is until 2017. Once the condo is ready she will move in and pay rent. Any money she makes from selling her condo (if any at that point - the building really isn't great) is going right into her retirement fund. The rent will be enough to meet government requirements for "market value" but low enought that she can afford it. The building is located next to a train station/'bus hub and a walmart so as she gets older and can't drive, she still has access to transportation and can walk to get groceries etc. It has a second bedroom that my aunt will more than likely move into (her retirement is looking worse then my moms')

Ironically, it is my father who is helping me out with the logistics of this (he is my financial planner). My parents are divorced and they don't get along but he recognizes that one way or the other I will have to take care of my mother when she is older and this is a perfect plan to do it. I benefit from having an investment property and she benefits from living in a safe, accessable area.

So that is my news. I'll keep you posted on how things progress :)


Bex -

iVillage Member
Registered: 11-13-2011
Mon, 06-16-2014 - 9:23pm

Sounds like a good plan for both of you :)

Malea

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Community Leader
Registered: 08-25-2006
Thu, 05-22-2014 - 12:18pm

Wow!  Sounds like you have it all figured out.  So nice you can do this for your mom....

Serenity
iVillage Member
Registered: 05-08-2006
Wed, 05-21-2014 - 9:36pm
Bex, I think this is a good plan. My brother and I did something similar for our mom...we bought the house across the street from my brother and she paid rent. We took a tax loss on the property, and tha capitol gains are ours. This was an easy way to transfer her assets to us...we were fortunate that she was able to live 'independently' until she died, but with the arrangement we had, the house was protected had she neded nursing home care. A few times hear the end of her life, I suggested that she needed 'assisted living' and my brother pointed out that with them across the street, she already had it! I hope this plan works well for you.
Avatar for demecafe
iVillage Member
Registered: 04-08-2008
Wed, 05-21-2014 - 3:44pm

That sounds like a great plan! I wish we I could do something like that for my mom, but she's set in her area (different state) and has my two sisters near by. I wish I could have her closer to me though. 


demecafe