Planning on buying a house with MIL. She would lend us half the price of home interest free in return for being able to live in it rent free. We’d have 100% ownership. Repayment only required if we sell the home.

She would maintain the place 100%. We would cover races and insurance.
Relationship aside, does it sound like a fair deal?

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For me that’s more than fair, but I’m from a family that lives with multiple generations with or without help.

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How long do you think she’s planning to live there rent free?

It may not be the best decision financially. Very possible you could take out a mortgage, rent to a tenant at a rate that generates positive cash flow, and at the end of the mortgage you still have 100% ownership.

That said, it could be a headache to manage maintenance of a rental property. It sounds like part of the goal here may be to give a relative an affordable housing option, which is a totally valid priority. I don’t know that I would want to do it with my MIL, but it doesn’t sound unfair or as though you’re being taken advantage of.

So there would be no mortgage, and she does the repairs, but you pay monthly and annual bills. Taxes, insurance, utilities?

My sister does this, but her in laws contributed to the down payment and that’s it. It sorta works for them. I’m also from a multigenerational household so it’s not odd.

Is this a house in a good area that will appreciate? Do you need the money for anything else? Do you need to take out a loan to buy the house? Would you be able to pay the mortgage if so?

Sounds ok if in an area where you’d like a future rental property anyway and I would do it assuming we didn’t need the money but just recognize that you’re not making any returns on this until you sell the property or your mother in law passes. You should figure out the tax implications of a no-income rental property (think this would be favorable?)

I would do a deal with MIL if someone else was living in it

If she is living in it, it is unusual that you will ask her for that money. And issues will always come up regarding repairs, maintenance, and depending on her age whether she can do these things.

Is there going to be a mortgage for your 50%?

If you do this deal, all the terms should be in writing and executed via a lawyer

Not good, not bad; it depends on your financial situation. If you go for it though, make sure you get details about it in her will. Would be a real bugger if other family had claim to equity in a house you paid for.

Which nothing stops any potential heir OR debtor from doing so.
Debtors have a right to come after you too!
This is why i do not recommend you do this deal. At all.
If you to pay her rent to live somewhere, just do that

Seems this is easy to answer with numbers

Current IR vs market rate of similar home (I.e. cost of debt)

10% of income (roughly) for home maintenance vs. 0

Expected number of years for this situation

Model it out

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