PROS & CONS ? Pregnant daughter in law wants us to move with them in our IP.

Look at it this way if "She"the:rolleyes: wife is not happy,then i don't think you will be,plus six months goes very fast,or draw a line in the sand and say No,and go and stand on your own 2 feet and face reality like everybody else..
.willair.

Thanks, Willair.
I am thinking the same way. I will discuss with my BH.
 
Issue 1 is where do you and your wife prefer to live? If it is in your present home then you can make the offer for your son and his wife to move in with you, or rent one of your IPs.

If you really don't mind moving, I think the best option would be to share the 4x2 IP and have them pay you half the market rent ($195 per week).

This will make everything neat and clear for the tax dept, and also mean a financial gain for you by renting your PPOR (and also compensate for the moving and other removal expenses), as well as cheap rent for your son and his wife.

As you are officially sharing, the dynamics will be more even.

Congratulations on the coming little one, grandchildren are truly one of life's great joys.
Marg
Thanks Marg,
It is not a bad option in my view but still lots of discussion is needed with my BH before we make any decision. and by charging half of the rent, I can not get any benefit as I will be paying 45% tax on PPOR's rent (no tax deduction).
 
This is very very close to home for me. Once you are in the situation it is very hard to extract yourself from it, especially when a baby comes along.

When your wife says if it doesn't work you can move back. Not easy to just move back when there is a tenant in there. I say find an alternative.

What about if you stay in PPOR and they move into IP and pay market rent, and you pay their credit card or some other expense for them, you know like gift something back to them. Not saying tax avoidance or anything, but you want to help and this is helping in a huge way but maintaining your sanity and having your own space.


Alternatively, help them with a loan of some sorts to get them into their own place sooner.

Sunshine
 
We haven't discuss that matter yet because my wife does not want me to ask or say anything as DIL is pregnant. I think, my wife will buy groceries, cooking, cleaning etc and I will be doing other household works and bills will go from our account. It will be a tough time for me, if we choose that road.

In all honesty, do you really think this is fair. I wouldn't want to ever move if I could have a live-in housekeeper AND have all my living expenses (bills & rent) paid for me with my only contribution $40pw.

Also, you said previously that the daughter-in-law only works casual, but will stop this when the baby arrives. How long will it take them to save for a deposit on only one income and a new baby? It could be a VERY long term arrangement if you go this path.

Help, by all means, but don't disadvantage yourself in such a big way by doing it. The only way they will learn to stand on their own two feet is if they are forced to. Sometimes you have to give a little push. If you don't, you will start to resent it if they spend money on things that you deem unneccessary, because you are paying for everything and they are supposed to be saving to move out.
 
This stood out in one of your replies to a question - "Son does not want to be part of family, that is only the problem, does not want to contribute."

Is the son you refer to the married one about to be a father, or the younger son living at home.

If it is the one about to become a father, then I would be very concerned about the whole arrangement. If it is the younger son, then I understand, because I have three of them :D.

How old are your sons?
 
This stood out in one of your replies to a question - "Son does not want to be part of family, that is only the problem, does not want to contribute."

I noticed that too, if it is the son who is moving in I would be very concerned also. I also find it concerning that it would be you and your wife doing everything and paying for everything. Personally, I think that is just not on, and if I was your son I'd be wanting to help out!

IF you went ahead with this arrangement (personally I wouldn't, not that I have children), I'd be doing a few things:

1. Setting ground rules as someone else mentioned, it is YOUR home. The fact they are paying $40 a week towards a $350 per week home does not make it their home. I'd be making sure they know this and know their place.

2. Distributing chores, not having you and your wife do everything and take care of them. They are adults and about to become parents, they need to contribute. Each person should be assigned weekly duties so there's no arguments as to who is doing what.

3. I would be charging them more than $40 per week. Even if you don't want to take their money as you want to help them, I'd be at least taking $150 / week for example and save this money up for them without them knowing. This way, in their minds, they aren't getting a free ride and have to take some financial responsibility. Then when they are almost ready to buy a house, you can tell them they have an extra $15K for example.
 
If this young couple have problems managing money, you may be doing them a disservice.

Have a read of Noel Whittaker's column here starting on page 2 for another perspective.
 
tricky issue.
first granchild, what a joy
daughter in law wants to live in extended family
son does not want to contribute
You have previously offered to rent them one of your IPS

One solution may be to find a house to rent nearby. You could then live close to each other, and you could help them out with the rent until baby arrives. This saves moving on your part, and means you both have a seperate residence if anything changes.

Can you build a granny flat out the back of one of your properties? this might suit everyone in the short term, and longer term they are going to have to stand on their own feet anyway? after your older son ahs finished with the granny flat, perhaps your other son or a boarder could move in?

I dont like the idea your daughter in law proposes, but it could work. Having a baby may be the change your elder son needs to step up and contribute. having the extended family around may motivate him to save enough to buy his own place (I know it would me...)
 
Moved away, Moving back.....Happy beginning

Thank you very much for advice and suggestions and your kind support. I wouldn’t have discussed even with my brothers/ sister and parents. This forum is like an extended family and Rixter,Simon, Skater,Joe D, TWOBOBSWORTH, Biggles, Rugrat, Joanmc, Wylie, Willair, Marg4000 and Sunshine helped us to make very important decision based on facts. We were only thinking emotionally. Last night we had discussion and we (me & BH) came to conclusion that........................................................................... 1). We are not going to move with them. 2). They (DIL & SON) can live with us for 6-12 months. 3) As our house is 3BDR and there is no room for their furniture, they have to put in storage or sale on ebay. 4) Our master bed room is big enough for them, we (me and wife) will move in a small bed room (they used to use it before they moved to rent). 5). We want to help them so we are not going to charge for anything. 6). My wife still wants to pay DIL’s medicines and supplementary foods, it is ok. She feels good by supporting her. The cost we pay for a new designation. Grand mother, Grand Father.
We haven’t discussed this arrangement with them. I will keep posting. Wish me good luck:D. Thanks a lot. Sorry for my poor English, (Third language:eek:)
 
If this young couple have problems managing money, you may be doing them a disservice.

Have a read of Noel Whittaker's column here starting on page 2 for another perspective.

Thanks Wobbycarly.
Noel Whittaker's column was a good read.
The young couple do not have saving problem, They don't spend on luxury, but they are LIP WASH (low income, pregnant wife and stupid husband).
 
I am pleased to see that discussion has helped you to clarify what you want.

But one thing you say concerns me:
"and by charging half of the rent, I can not get any benefit as I will be paying 45% tax on PPOR's rent (no tax deduction)."

Never base your decisions on the tax implications. In this case you would be clearly advantaged by keeping 55% of the rent you charge.

Do not forget your other son in all of this. His life will be impacted by the new family moving in.

LIP WASH - that term is new to me but I love it!!

Hope everything works out well.
Marg
 
Thank you very much for advice and suggestions and your kind support. I wouldn’t have discussed even with my brothers/ sister and parents. This forum is like an extended family and Rixter,Simon, Skater,Joe D, TWOBOBSWORTH, Biggles, Rugrat, Joanmc, Wylie, Willair, Marg4000 and Sunshine helped us to make very important decision based on facts. We were only thinking emotionally. Last night we had discussion and we (me & BH) came to conclusion that........................................................................... 1). We are not going to move with them. 2). They (DIL & SON) can live with us for 6-12 months. 3) As our house is 3BDR and there is no room for their furniture, they have to put in storage or sale on ebay. 4) Our master bed room is big enough for them, we (me and wife) will move in a small bed room (they used to use it before they moved to rent). 5). We want to help them so we are not going to charge for anything. 6). My wife still wants to pay DIL’s medicines and supplementary foods, it is ok. She feels good by supporting her. The cost we pay for a new designation. Grand mother, Grand Father.
We haven’t discussed this arrangement with them. I will keep posting. Wish me good luck:D. Thanks a lot. Sorry for my poor English, (Third language:eek:)

That sounds like a win win solution to me. Never underestimate the value of keeping your wife involved and happy.

If the youngsters are not happy with this option then perhaps a little time in the real world may make them a bit more appreciative of the kindness that you are both showing them.

Maybe they don't understand the financial implications of what they asked for - perhaps they need to have the real cost of it explained? I am guessing that they might think you are a wealthy couple (at least in comparison to their stage of life) and they feel an entitlement to share in it.

As far as your english goes I think it is great. I would never have picked you for a non native speaker. I lived for three years in South East Asia and came home with barely enough of the local language to order a meal!
 
I think you have made a good decision where everyone wins. I too love the LIP WASH, I've never heard it before either but think it's hilarious. :D
 
Lip-wash

I am pleased to see that discussion has helped you to clarify what you want.

But one thing you say concerns me:
"and by charging half of the rent, I can not get any benefit as I will be paying 45% tax on PPOR's rent (no tax deduction)."

Never base your decisions on the tax implications. In this case you would be clearly advantaged by keeping 55% of the rent you charge.

Do not forget your other son in all of this. His life will be impacted by the new family moving in.

LIP WASH - that term is new to me but I love it!!

Hope everything works out well.
Marg

Thanks Marg...................................
LIP WASH : I just made that up................For my beloved DIL&ESon
 
of the 2 alternatives of staying in the same place, this one is the better choice. its still your place, it doesnt mess up the deductions of the IP, it doesnt allow the arguements about sharing a place and everything being even, and then whether that is fair (given they are on lower income), and also provides them with the incentive to move out when they can (that is 3X1, so not too comfortable/easy for them).

just be prepared when baby arrives, you might be losing as much sleep as them depending on size of house and where baby sleeps etc.
 
ipinvestor

Your PPOR is 3X1 & could be rented out for $350 - you would pay tax on this money.

Son & Daughter in law want to move into one of your 4X2 IPs and pay $40 per week instead of $390 a week as they now want to save for their own PPOR

How much $'s does Son and Daughter in law have saved for deposit for own PPOR?

I doubt there are any benefits except making my wife happy. Agree with you :)


The way I see it.

The kids don't have a deposit except from the sperm bank, now they want to tap into the Grandparents to be so their rent can be subsided so they can save for their own house.

Maybe help out with part deposit so they can get into a 2 bedroom unit and of course babysitting new grandchild and helping buy 'things' for new grandchild eg pram, clothes, bed.

Make them stand on their own 2 feet OR suggest they come home and save XXX dollars per week towards their deposit.


Sheryn
 
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