Inheriting a home in about 15 years

9 Replies

My wife and I have three young kids, have lived in our first home for 13 years, and do not currently own any investment property. We both have full time careers (not in real estate) and some debt as well. I am 40 and my wife is 39. We would like to get rid of our debt, and we have also outgrown our current house. We would like to move into a bigger home, but would like to do it in the smartest way possible.  We are looking at 3000 sq ft homes plus. I know it’s different for everyone but this is what we are needing/wanting for our family. 

It would have been best to start house hacking in our 20s when it was just the two of us, but we didn’t do that. Now with five of us, our priorities have shifted to being in a good school district in a house with enough room for our family. We would like to increase wealth and cash flow through owning real estate. My parents are in their late 60s, and although I don’t like to think about them passing or getting old enough to not be able to live independently, they have told us that we will inherit their property when they can no longer live there. We have no idea how long that could be. It could be from 1 year to 30 years, but I am thinking most likely scenario is 15ish years. What strategy should we take to maximize cash flow, pay off debt, and acquire properties, knowing that we will inherit a mortgage-free home in the future? 

@Andy Grove step 1. Never assume an inheritance until you have it. Statistically speaking one or both of your parents could live into their 90s. That’s a long time from now.

Step 2. Create a plan and goals around your current situation, ignore the potential inheritance house

@Andy Grove

Nobody “needs” a 3,000 square foot house. I was just in Europe and we rented Airbnb’s the whole stay. Every single place was super tiny compared to here. But, every place had a living room, bedroom, kitchen, and bathroom. Everything we “needed”.

I know this is a little off track from your question; but if people truly want to control expenses they would stop upgrading their homes and lifestyle to match their paychecks.

Originally posted by @Caleb Heimsoth :

@Andy Grove step 1. Never assume an inheritance until you have it. Statistically speaking one or both of your parents could live into their 90s. That’s a long time from now.

Step 2. Create a plan and goals around your current situation, ignore the potential inheritance house

Thanks @Caleb! Yes, I agree, I’m not trying to base my investing strategy on that fact, it’s just something to consider, although like I said in my post, it could be 30 years. So you believe that that is irrelevant to any forward-looking strategy?

 

Originally posted by @Anthony Wick :

@Andy Grove

Nobody “needs” a 3,000 square foot house. I was just in Europe and we rented Airbnb’s the whole stay. Every single place was super tiny compared to here. But, every place had a living room, bedroom, kitchen, and bathroom. Everything we “needed”.

I know this is a little off track from your question; but if people truly want to control expenses they would stop upgrading their homes and lifestyle to match their paychecks.

Thanks for your opinion, Anthony. Renting Airbnb properties while traveling through Europe is hardly what I’m talking about. Those are typically rented residential properties with “everything you need”. I stay at Marriott Courtyards and have everything I need. I bet those rooms are smaller than your Europe vacation rental. I’m talking about being settled into a community with kids. I never mentioned my expenses and never said I was hurting. And on your comment that you said was off track from my question, you’re absolutely right, it was off track.

 

Originally posted by @Linda Lovely:

A long nusrsing home stay has decimated many a legacy.

 Thanks for your helpful comment, @Linda Lovely! You may have misunderstood my post. I am not relying on a large inheritance as an investment strategy. As I said in my post, it could be 30 years or maybe more. I simply asked for the best investment strategy (preferably from someone who has been in a similar situation) ideas of some smart ways to get into the market given my actual living situation. Are you suggesting that an inheritance shouldn’t be considered in financial planning?

@Andy Grove

“What strategy should we take.....”

Don’t buy a bigger and more expensive house. Use that money to buy a rental property. It isn’t the answer you want to hear, but spending more money on a bigger house is literally the exact opposite way to achieve your goals.