Is Multi Generational Living for You?
Written By: Jason Nenadov
Thursday, July 09, 2020
Dont be surprised Multi generational living is a rising housing trend in the nbsp;U.S. these days, and almost one out of five Americans have been living in a multigenerational household since 2014.
Records show that 64 million Americans have adopted the multi generational life>
-What is multi generational living?
-Why live in a multi generational home?
-Pros and Cons
-What to know before buying a multi generational home?
-How to finance a multi generational home?
-Kinds of homes best suited for multi generational living
-Property features to make multi generational living easy
-How to make multi generational living work
What is multi generational living?
If youre asked to picture multi generational household, youll probably imagine a set of parents with children and an older couple who are most likely the grandparents. If this is how you imagine multi-generational living is, youre right.
Multi generational living is when two or three generations come together and live under the same or in the same property."
There are many reasons why this happens and why many people choose this type of living situation.
There are different kinds of multigenerational household. Theres two generations, three generations, and more than three generations.
The two generation household is something youre familiar with. It happens when people from two generations live under one roof. This is a scenario you know about. For example, a couple from one generation living with children from another generation.
Typically, when you grow up, you move out and get your own place. Right? Well, in this kind of household, the child who is now an adult does not move out of the house but opted to stay and live with the parents. Or he or she could have moved out of the house, but came back and started sharing one roof with the parents.
The three-generation household is the one youve imagined. It consists of grandparents, parents, and children living under one or one property but under different roofs in some cases.
More than three generations refer to a family unit that has different generations living together. This could mean having children, the parents, the grandparents, and some other >
Whatever the reasons are, the fact remains that multi generational living is increasingly becoming popularnbsp;
Its like the 1940s again where three generations living was the norm for many families. In this period, about 25 of U.S. population lived with three or more generations in one home. The American household started moving towards the two generation >
Why live in a multi generational home?
Youre probably wondering why any adult would want to live with their parents. Or why would someone want to live with a >
There are some reasons why some people choose multi generational or next generation homes. Let us explore the reasons belownbsp;
Financial benefits. This is primarily the reason why many people are starting to prefer living in multi gen homes.
Living is costly these days Buying or renting a home can cause a serious dent in someones pocket. Some college and fresh college graduates who have student loans and car loans opt to stay in their parents home to be able to pay off their loans, or save money when the time comes they have to move out.
Different family structures also make owning a multigenerational home practical. If you are a single parent supporting two or three children, moving back to the family home or buying a multi generational homenbsp;with your parents is a significant advantage.
Not to mention the savings on childcare because now that there are grandparents who can look after the children when the parent is away.
There are also families who opted to live with the grandparents because one or both the grandparents need financial help.
Another good reason why many people love living with their extended family is because of >
The opportunity for grandparents and grandchildren to interact and develop a closer bond is another reason why some people opt to build an in-law wing. Aside from the close bond and >
Pros and Cons of multi generational living
There are always two sides to a coin. Different family structures have different pros and cons. In this section, we will learn the advantages and disadvantages of living in a next generation home.nbsp;
Saving money. Living in a multi gen home with extended members of the family can actually save you money because you share living expenses.nbsp;
If your previous monthly rent was 1000, when you rent or buy a home with your extended family members, you cut down your expenses because you are sharing the rent with someone. nbsp;The same is true with utility bills. This can help you save more.
If you decide to live with your parents and they are still paying the mortgage of the house, you can pay a rental fee at an amount that is convenient to your budget.
Shared responsibilities. Leaps and bounds in medical technology enhanced lifespan. Now that people are living longer, the challenge becomes "how do we take care of the home?" The answer is in next generation homes.nbsp;
When different-age people live together, distributing age-appropriate responsibilities is the way to go. Younger people in the household can take care of more challenging physical work like mowing the lawn, cleaning, repairs jobs, paint jobs, lifting boxes, etc. Older generation can then take the less physically demanding tasks like cooking, washing the dishes, looking after the children, and other less strenuous tasks.nbsp;
Improved family >
Living under one roof gives family members, especially grandparents, more time to interact with their grandchildren, giving them plenty of time for emotional bonding and in the process developing more closeness among themselves.
With a multi generational household, theres no need for a special occasion to gather and have fun. It can be done weekly.
Improved security. nbsp;Grandparents benefit from the social >
A multi generational household offers significant advantages to children whose parents are absentee or suffering from divorce. Grandparents are an instant source of love, support, attention, and affection. Whether thats providing assistance in doing homework or just being there to listen or help when the children need someone to talk with is already a big helpnbsp;
The constant attention of a loved one when one or both parents are busy or away at work can be a source of assurance for the children. nbsp;
While there are many advantages to living in a homenbsp;with your extended family, there are also disadvantages. Check out the following cons:
Personality conflicts. One of the major disadvantages of living with other people are conflicts in habits and behavior. If youre a parent, you may not be used to being given unsolicited advice on how to raise your kids.nbsp;
If youre a grandparent, you may have conflict with your children regarding parenting >
Limited space and privacy. Another disadvantage of multi generational living is the limited space and privacy. Traditional homes are designed and built for only a few people. Squeezing in more family members can limit the space for everyone and cause discomfort unless you get a home designed to accommodate everyones needs.
How to finance a multi generational home
Buying a home can be a challenging and tedious process. Buying a multi generation home makes it even more challenging. Not only do you have to consider more peoples needs and must-haves, you also have to deal with more employment issues, credit scores, financial stability, and more.
Before buying a multi generational home, you need to have a clear discussion with everyone involved. You need to get things in writing, with everyones signature. This is a precautionary measure for those times when some people have forgotten what theyve agreed to and start making things difficult.
Individual mortgage or joint loan?
A custom-built multi generation home, or even one that is big enough for you and has an attached suite for your in-laws, can be expensive. Fortunately for you, you have the option of getting an individual loan, or if the house is too expensive, a joint mortgage.
An individual loan is when you get a mortgage and you pay for it by yourself. A joint mortgage is when you and your parents or your grandparents apply for a mortgage together.
In a joint mortgage, the lender will evaluate all the applicants incomes and assets and consider it as a cumulative number. There are pros and cons to getting a joint loan.
There are pros and cons to getting a joint loan.
For one, if your income is not high enough and your parents or extended family members have better-paying jobs, the salary amount on your application paper will look good. If your credit history is a little rocky, partnering with someone who has excellent credit history can really help.
A joint loan also allows you to save some money on the property tax, and you and your parents will also get an income tax rebatenbsp;
However, while it may look great because you can qualify for a larger loan, there are also several downsidesnbsp;
One downside is if you have a good credit history and your parents have a bad credit history, it will harm the chance of getting a mortgage. In this case, you are better off getting an individual mortgage.
Another disadvantage is everyone who took a mortgage is responsible for paying it on time or risk getting penalized. This can be difficult especially in situations where one might have lost his or her job, so others have to carry an additional burden.
Copyright© 2020 Realty Times®. All Rights Reserved
First, the property must be in good condition with no deferred maintenance. While the appraiser d...
> Full Story
A well-spruced and aesthetically-pleasing garden enhances the value of your property, especially ...
> Full Story
As a Realtor, I spend a lot of my time working from home. Though I do take clients around, most o...
> Full Story
All Rights Reserved.