FundRobot » Child Investment Accounts » Save up money for my own house or wait until I inherit my mom's?

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Old   #1 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

I'm 25 and my mom's 60. I'm an only child. I live in an expensive community, where even a 3-bedroom house costs half a million dollars. By the time I have saved up enough money to afford a down payment on a house, I will be about 35.



Do you think I should just wait until I inherit it from my mom? She told me that she put my name on all the paperwork so it will go to me one day. In 10 years, she'll probably need someone to take care of her, anyway.
I have a full-time job, I have a 41k annual salary.
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Old   #2 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

Wait until you inherit your mom's
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Old   #3 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

WAIT FOR YOUR MOM TO DIE! AND KEEP THE MONEY! 666 YOLO all day is the only path to choose
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Old   #4 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

Save your own money for your own house. Yes, it would be great if you inherit from your mom someday, but don't put that worry on her. Maybe she will be ill and need her money for doctors. Maybe she will have a sick brother/sister/nephew/niece and will need to send some money to that person. You don't want to make her worry about saving enough of her money to give to you. Let her enjoy her life, while you save your own money for your own needs.
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Old   #5 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

Well obviously start saving now regardless because it's going to be better for your portfolio anyway. Just remember that 60 is not that old anymore. She may have another 30 healthy years left in that home, so I would recommend to start saving now and then re-evaluate in 10 years if you actually want to make a purchase or just wait her out and then re-invest the funds into something else.
That way you have both of your bases covered.
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Old   #6 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

Well if you are looking at having a stable life investing in your own house is a good idea as you are not spending money on rent any more.

Many people buy in an area outside of the expensive area or buy smaller houses or apartments. These are often the ones that have the highest movement in prices.

remember, at the moment house prices are fairly cheap so not only will you save on rent, you will have the value of the property as the value increases.

You can also your mother to secure your loan as well, however this can be a risk for her.

Your alternative is to invest your money into other things such as your education, business or shares.
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Old   #7 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

It's unlikely she'll have enough to make a down payment on your house. With elderly care until she's 100 (considering modern life expectancies) and estate taxes you will be left with very little. If you are too poor to pay for your own down payment with a job you will likely be racked with debt or so poor you can't make the payments in 30-40 years.

Get a job. It's likely that house will be run down and not worth nearly as much by then. Get a good job 500k goes no where nowadays unless you live in Bangalore.
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Old   #8 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

There is a huge tax difference between inheriting your mother's house and her gifting it to you while she is alive.

There is nothing inherently wrong with living at home and helping your mother. When the time comes that she needs help, she can sell the house ($250,000 profit tax free), gift you a bunch, and use the rest for the retirement home.

So for now keep living with your mother, chip in some to help with the bills, and keep saving your money. [now, to sound like a fortune cookie ...] The future will bring more clarity.

P S & LOL: Prince Charles is still waiting for his mother to die so that he can become king of England (!)
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Old   #9 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

It's a good idea to save money - no matter what you use it for.

And I totally resent your notion that in 10 years your mother will need taking care of - if she is healthy and active now.

I am 67 years old. Work full time at a job I've been with for over 25 years. Am very healthy. And can honestly say I can work circles around some of the silly 25 year olds I work with.

And, as well, know things silly 25 year olds don't seem to know. Like you don't have to live in this expensive community. And on a 41k annual salary - you would never get a mortgage for a half a million dollars - unless you have about 80% of the asking price. The rule of thumb with a a normal 10 to 20% down payment is about 3 to 4 times annual salary - which means maybe $160,000 to $200,000 on a 41k annual.

On a $500,000 house- 20% down is $100,000 leaving a $400,000 mortgage. Which is likely to have a monthly payment of $2000 or better.

Do you really think you can afford that? And the yearly property taxes which are apt to be high. As well, as utilities, groceries, maintenance, house insurance, car payment, car insurance and anything else you want/need.

Even if you do - the mortgage lenders won't.
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Old   #10 (permalink)
 
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Default save up money for my own house or wait until i inherit my mom's

at 41k a year and no downpayment nobody's going to sell you a half million dollar house. So it's not like you have an option right now.
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