Why I Chose Multi-Generational Living

We've definitely had a lot of people question our actions, but you know what, I do not care. We know we've made really smart and conservative financial moves for ourselves and for my mother. This is a widely accepted practice in many cultures, so I find it odd that there is such a stigma attached to it in ours. Not really, though. The stigma is meant to be there to deter people from making smart decisions.

Why?

If you know anything about this weak economy, then you know more and more families are deciding to make this move. The cost of living has gone up exponentially due to a weakening of the dollar (aka inflation). This has made it near impossible for many families to be able to afford housing on their own. Not to mention retirees being on a fixed income that does not keep up with the reported 1.5-2% annual rate of inflation (it is actually so much higher). There is no winning for anyone here.

As I have learned more and more about the way the world works, and as my mom has gotten older, I did not like the idea of her living by herself in a large city. Your reasons for considering this living arrangement may be different, but this was mine.

We talked my mother into selling her home that was not paid-off but had quite a bit of equity in it. She put that cash into our new purchase while my husband and I got a mortgage for the rest. Now that my mom is retired and on a fixed income, not having a mortgage is a huge help for her. We would have preferred to buy a house in a more rural setting with a few acres but ended up with a new construction that was spec built in a slightly more centrally located neighborhood. This enables my mom to be able to drive a short distance to visit her friends. The buy, while not ideal for us, is a smart investment. We purchased for below market value and being that the house is brand new, it came with a warranty. Any major issues over the next ten years will have to be fixed by the builder. Lastly, each party's investment is a limited one. Even when the housing market takes a large negative turn, we will most likely never be upside down on our loan (meaning owing more than the house is worth). Plus our monthly payments are extremely low. We also get to take advantage of the many luxurious amenities provided by the subdivision. We split insurance, taxes, utilities, and groceries which makes the burden of these costs much more manageable. My mom really helps out with babysitting and cleaning. My husband and I are on the deed, so we stand to inherit the house. We are making minor cosmetic changes to the home slowly over time so the house feels more like our own. I will document the changes to show you how to dress up any stark space.

How We Make It Work

We made sure to purchase a 4 bedroom, 3 bathroom home so everyone would have their own bathroom. We also have a study in the front of the house that we converted into a second living room. The fourth bedroom is used as a guest room. We have enough square footage and storage space that we do not feel cramped and everything is well organized. When moving in together, you must consolidate your things. Especially your kitchen supplies. This process is really great for getting rid of clutter. It's also great to have someone split the cost of projects around the house. We have gotten so much done in a short period of time.

Since many builders are feeling the hurt of rising costs of goods and services, they have made certain changes to stay in the game. There are several builders nowadays that are making floor plans specifically designed for multi-generational living. Many new homes now have in-law suites and two Master suites. These builders see the writing on the wall. Maybe it's time you did too.