Buying the family home - a good idea?

How much are we actually talking about? In the last few days there was a similar question, the parents wanted to transfer the 60k house with 100k debt or something like that.

And if your father continues to live there, does he pay rent? Or how would you finance it?

To shed a little more light on the matter:

Here’s a suggestion on the direction it could go.
- Your father gives you the house as a gift
- He retains a lifelong usufruct right or a (limited) right of residence
- You commit to paying a life annuity
- Your potential co-heirs (father’s wife, your siblings) declare a waiver of their compulsory portion (optional)

Open questions remain about who has which responsibilities regarding the house (ongoing incidental costs, minor renovations, major renovations).

You should clarify all this first within the family (that is the higher ideal; reality is often different), then you go together to a notary and get advice. The notary will then draw up a contract.

Costs: notary fees. Taxes should probably not apply (presumably you are below all exemption thresholds).

Hello Bola!

You should provide some key data about the house, either a realistic current value of the house (or what you intend to pay your father) or

- plot size
- standard land value
- living area (including basement)
- year of construction
- condition
- approximate age of your father (sounds silly, but is important for calculating a right of residence)

Also important: do you currently live in the house yourself?

If you do not want to disclose these things, that is perfectly fine, however, in a response _all_ eventualities have to be covered, so it would be helpful if you could specify your details - also gladly via PN.

Best regards
Dirk Grafe

My father would never sell the house to strangers. Whether he will transfer it to me during his lifetime is also uncertain, because then, in his opinion, he would lose all rights to the house. So I would have to do a lot of convincing. He would probably prefer that it only passes to me after his death, if he agrees to that at all. During his lifetime, I don’t want to have anything to do with the house either. He shouldn’t pay me anything, but I also don’t want to be responsible for anything related to the house. Except, of course, to pay him a small amount once or for life. My father really doesn’t need much. It’s just to have a cushion in case a new car is needed or if one wants to go on vacation. I am thinking maybe around 50–80,000 euros, which I would pay him either once or monthly over several years. The house will probably be worth more. I’m also attached to the house and don’t want it to be sold someday. So the plan is that my father gets a little something to set aside – but since I don’t have anything to give away either – I buy the house from him at a reasonable price. So we both benefit from it. But it’s not as simple as hoped. Thanks for all the suggestions and information. Best regards

There is actually a fairly simple solution.

Your father sells/gifts the house to you. In return, he is granted a lifelong (free of charge) right of residence. Additionally, it is determined who has to cover which costs. I would make an appointment with a tax advisor for this. To my knowledge, there are ways to structure this in a tax-efficient manner. Apart from the fact that I have been out of the topic for too long, I am also not allowed to provide tax advice here.

Just try googling "Wohnrecht Vermietung und Verpachtung".

The thing with the tax advisor is, for example, a tip I wouldn’t have thought of on my own. Thanks!