Single family homes are often not exactly that these days, at least not in the traditional sense of parents and children in one house, their parents in their own home or in some sort of senior living setting, adult children starting out on their own after college, etc.
More often than not lately, several generations are living together for varying periods of time. According to the U.S. Census Bureau, quoted in an article in New Penn Financial newsletter, “from 2007 to 2011, the number of individuals aged 25 to 34 living at home increased by about 2 percent to 14.2 percent of all members of this demographic.”
Post-college financial struggles are often a factor, with often taking longer and graduating with enough debt often that buying their own place isn’t going to happen as early as previously.
Employment, or lack of it, is often a factor. In addition to the post-college financial struggles, in this economy often job cut-backs make someone go back to where they came from but with different expectations – adult independence and yet some degree of financial need and less privacy than they’d like – or than their parents would like.
Folks in the older generations often don’t want assisted living or nursing home and yet are not really able to stay safely in their own homes, so moving in with their children often provides at least a temporary solution. More information about alternatives can make choices easier on everyone concerned, and often what seemed like an undesirable choice turns out to be a good one. (Ask me – just this week it worked that way for someone.
Marriages don’t always last “till death do us part” and someone needs to come back home, maybe with a child or two. As much as Grandma love the grandchildren, it can be difficult to go from the quiet of the empty-nest to the energetic busyness of children.
A recent article on multigenerational homes in the NewPennFinancial newsletter (February 12, 2012) has some interest statistics on these non-traditional homes. For those situations where the solution may be buying a property for the other generation, they have a lot of good real estate investor loans . For information about these programs locally, call Rhonda Mullins, 423-764-0611 and tell her Mary Sheridan sent you.
Shared Equity Agreements can be a good alternative, with FHA financing for co-borrowers with one or more generation. For example, parents and college students can combine income and debts to avoid the high cost of dorm living, as an investment for the parents rather than just as a gift. With good credit, less cash is necessary than for most investor financing. More about this another time, or call me for information.
Housing floor plans are increasingly taking these growing needs into account. Ask me about good properties to share in the Johnson City area, or for good agents elsewhere who have experience with making everyone happy. Or think about an addition or other alteration of your present home.