If your finances are looking good and your family is comfortable enough with your decision, buying a home later in life can be a good investment. Before you head to your closing, it's a good idea to sit down with your family and talk about your long-term plans for this house. How long are you thinking about living there? Are you planning to sell it eventually, or are you planning to leave the home to one of your children?
Even if you're not planning to stay in this house for the rest of your life, as you age, it's more important than ever to think about unforeseen medical issues that could put you in a position where you're unable to care for your home. While it's not an easy conversation to have, you should absolutely sit down with your family and talk about what this home will mean for them if you fall ill or after you're gone. Your children will be better off if you've discussed details up front, such as who will care for the house if you're not able and even who would inherit the house.
Before sitting down to talk with your family, think about what you want and how you'd like the conversation to go. While you can't fully control what will happen, planning ahead can help you all talk about this difficult topic a little bit more smoothly. If you don't feel that you can discuss this kind of thing with your family, you might want to reconsider purchasing the home.
You don't want your decision to become a burden on them down the road, so it's a good idea to get everything out in the open and make sure your family is on board. With some good communication and planning, this home can be more than a good investment for you -- it can also be an investment in their future.
For more information on buying a home, check out the links below.
- Hatfield, Rob and Jane Riffe. "Talking About Money with the Grownups in Your Family." West Virginia University Extension Service. 2010. (Feb. 17, 2011)http://fh.ext.wvu.edu/r/download/84572
- Milevsky, Moshe. "Many homeowners should have rented." The Globe and Mail. Aug. 5, 2010. (Feb. 10, 2011)http://www.theglobeandmail.com/globe-investor/personal-finance/many-homeowners-should-have-rented/article1518767/page4/
- Weston, Liz Pulliam. "Don't bite off too much house." MSN Money. Nov. 18, 2009. (Feb. 10, 2011)http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/Don'tBiteOffTooMuchHouse.aspx