We live in a home provided by my husband’s job, can we buy a home that is a primary residence in another town?
inquisitive asked:
The home we would like to buy is 3 hours away. We will use the home for our frequent trips to that town, holidays, and eventual relocation. We also need to provide a safe and affordable place for my mother-in-law to live. We will pay the mortgage/maintance and she will cover the ultilities only.
We pay taxes on the fair rental value of the home my husband’s salary package includes, but we have no ownership in it nor do we own a home.
My Mom-in-law is 70, can no longer work at her former parttime job, is living on a fixed income, has RA, her meds for RA/ food/ basic needs per month cost more than her income, and the lot rent for her single wide manufactored home has tripled to over $600 per month in 6 years. These are some of the reasons she cannot rent from us, buy her own home or stay where she is, she has no resources to do so. What savings she has is being used up in her day to day expenses. To help her out as well as provide a place for us to stay, we are looking at buying a house. This should lower her monthly costs and help her to stay somewhat independent. Soon enough we will have to address doing more for her.
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The home we would like to buy is 3 hours away. We will use the home for our frequent trips to that town, holidays, and eventual relocation. We also need to provide a safe and affordable place for my mother-in-law to live. We will pay the mortgage/maintance and she will cover the ultilities only.
We pay taxes on the fair rental value of the home my husband’s salary package includes, but we have no ownership in it nor do we own a home.
My Mom-in-law is 70, can no longer work at her former parttime job, is living on a fixed income, has RA, her meds for RA/ food/ basic needs per month cost more than her income, and the lot rent for her single wide manufactored home has tripled to over $600 per month in 6 years. These are some of the reasons she cannot rent from us, buy her own home or stay where she is, she has no resources to do so. What savings she has is being used up in her day to day expenses. To help her out as well as provide a place for us to stay, we are looking at buying a house. This should lower her monthly costs and help her to stay somewhat independent. Soon enough we will have to address doing more for her.
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February 24th, 2009 at 11:50 am
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If the home is 3 hours away from your job now, it will not be considered a primary residence to you. The tax laws have changed so you no longer receive a full deduction of gains that are not used as a primary residence for the entire time you own them. If you have gains, you will be taxed on the percentage that you did not live in the home.
February 25th, 2009 at 7:02 pm
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AB has good points about tax deduction. You will still be able to depreciate if it is an investment property. That has tax advantages also. Just “rent” it to your mother in law and visit as often as you want. Once it is your residence things will change, things will change anyway.
If you can afford I would go for it. In most places it is a good time to buy.
February 28th, 2009 at 12:03 pm
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It won’t be your primary residence, though, will it? Will ALL your mail go there? Is that the place people go to to find you? You will be lying on all the mortgage paperwork (as in fraud).
Why doesn’t your mother-in-law buy it and you have papers drawn up to accomodate to goal you wish to attain? It would be her primary residence and she can sell it (or will it) to you at cost at some future time.
March 2nd, 2009 at 5:12 pm
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This sounds like a perfectly good plan. You will pay a slightly higher interest rate on the new home since you won’t be living their yourself full-time..
March 4th, 2009 at 11:46 pm
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Maybe this would help