Not since the 1950s…
…have we seen a trend where multigenerational residences are becoming the fashion. Within the last few years, more and more grandparents are selling the old homestead and purchasing newer and much larger homes. This seems counter-intuitive. Why would the old folks want to ramble around in a larger home, pay the higher utilities and property taxes, when you would think they should be downsizing?
Something new is afoot.
Adult children along with their offspring are moving in with gramma and gramps in record numbers. I believe there are very positive sociological reasons why this trend will be beneficial, however, these assemblages of generations are being formed primarily for practical reasons. It’s about the money! It about the cost of housing that is no longer affordable for the younger generations.
I call a household that has more than one adult couple, usually parents and grandparents, as well as a passel of kids and a menagerie of pets a Multigenerational Assemblage Pod (MAP). Builders are including specially designed homes in their development to provide for this trend. And older folks are renovating their old homes that cannot accommodate their current needs by adding on bedrooms and bathrooms in order to satisfy the new requirements to house their extended families.
True, MAP’s can be purchased by the young adult couple to provide housing for themselves, parents and children. This is only possible when they have sufficient income to afford a much larger home.
More and more frequently, it is the grandparents who provide the financial resources to accomplish the task.
They often facilitate the renovation or move with a Reverse Mortgage. If the old homestead is acceptable, the grandparents refinance the home where they lived for years with a Reverse Mortgage and get a contractor to expand the home to meet the needs of the extended family.
If the family wants to live in another location, the grandparents sell the old homestead, purchase a newer and more expansive home with the proceeds of the sale of the old home as a downpayment and obtain a Reverse Mortgage to complete the purchase of the optimal home.
In either case, the grandparents do not have to make a monthly mortgage payment for as long as either lives in the home. So, an expanded home to meet the needs of the extended family with no monthly mortgage payment for as long as either grandparent lives in the home is possible. Hmmm…this may pique your interest!!
ASK ME HOW YOU CAN GET YOUR OWN MAP WITH A REVERSE MORTGAGE!!!
(909) 273-5556 / (760) 407-6740
HOME FINANCING, INC.