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  1. #1
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    Default Renting from parents

    This may have been asked before but I can't find it, so apologies if it has

    We may be in a position where dhs mum and partner will buy a house, rent it to us, and eventually it will be ours.... An interest free loan I guess, with the proviso that it would be theirs in case of emergency until its paid off or they die. My questions, has anyone done this, and what were the it falls to be aware of? I am a little hesitant, or unsure i guess as this has been talked about before and never eventuates, so I am not getting my hopes up.If it did work out it would be great as we'd have a better house than what we are renting now, better yard, location etc, and hopefully an asset one day.
    any comments or suggestions?Thanks

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    Default Re: Renting from parents

    Sounds as though it's really theirs as an investment property but will be yours in the will.

    Are there other kids in the family that could contest the will in that case?

    Alternatively you're going to want a pretty good contract.

    Realistically though this will not be your house until they die. You can teat it as yours, do maintenance and added expenses, but it will not be yours. As long as you're ok worth that i think it's a great idea. I've done it in the past

    Spent from my dome. Excuse autocorrect

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    Default Renting from parents

    Great idea in theory - just ensure everything is in writing/contract.

    The last thing you need is other siblings contesting/claiming their share when the IL's die. Which legally they would have every right to do if the property is in the parents name.

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    Default Renting from parents

    When in writing make sure both parents and yourself sign as well, a lot of people seem to forget that part? Lol.

    But yeah sounds like a great plan if it all goes ahead and you have the contract

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    I'd make sure that, so everyone is protected, you both have legal contracts drawn up, stipulating all these terms and conditions.

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    Default Renting from parents

    Wow I hadn't even thought as far as contracts and contesting wills... There is another sinking and lots of animosity with them and MIL
    And yes my understanding is it would only really be ours after she passed away, and it seems kinda Morbid to be thinking of that.
    Thanks ladies, lots to think about.

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    Default Re: Renting from parents

    Yes mOrbid, but also kind of sweet.

    Where many often feel rejected or abandoned by death, they will have something to offer that will be a long standing tower of strength and support to you

    Spent from my dome. Excuse autocorrect

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    Default Renting from parents

    I rent our house from my parents. They are great landlords. They make many improvements we've asked for like soundproofing the windows, security doors etc. air con will be put in soon.
    In turn they like us living here cos they have peace of mind and can access the place whenever they want.

    I'm an only child so yes thinking morbidly I know the house will be mine someday in the future (it's been discussed). I like knowing that it's ours technically. And that the rent we pay goes to my parents and not some strangers.

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    Default Renting from parents

    We rent from my mum.

    I think it's great as its definitely 'our house' and we can do what we want (as long as it doesn't negatively impact the value of the house), rather than being denied permission to hang pictures (has happened before..!)

    I'm really lucky to have an understanding brother (he and his partner have decent paying jobs and no kids, DP and I have crappy paying jobs and 2 kids) who is happy with the arrangement. However, the plan is that when mum dies (and she has this written down) that we sell her house, which is worth more, DP and I keep this one, and my bro gets $ to the value of this house... Then the rest is split between us.

    My suggestion would be to encourage them to have a lawyer involved! (They will have to if purchasing a house anyway), and have a proper lease drawn up. Also having them explain their future intentions to their other kids so they don't feel ripped off (if they're like that )
    (Sorry the post is a little vague - not enough sleep!)

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