Takeover of the parental home + extension for parents

The 50% solution only solves the "problem" of the parents not wanting to pay for their own care. However, this can potentially create new problems when selling or taking over a child. Possibly, a child cannot afford the buyout amount or does not want to. In the case of a sale, both owners may not agree. It can even lead to a forced auction. And then the parents simply have nothing left.

A fair purchase from the parents with subsequent extension and renovation is still (in my opinion) the best option. The costs for purchase, extension, and renovation will certainly be around 450k. Minus the 150k equity, you are at 300k. Now it gets critical. Possibly, the value of the property will approach the cost of renovation and extension. Possibly not. Here, the parents could buy a right of residence with their (already your) 100k. Then you are at 200k financing volume. That is not so much anymore.

Your brother then simply receives the other 100k as a gift. Then your parents are actually penniless, and in the case of care, you might have to pay. There are basic rules for calculation. Or you don’t pay, and your parents have no house, no financial resources, and poor care. That’s exactly what they worked their whole lives for. At least if they do not receive a good pension.

On Care
The maintenance obligation of the children remains in any case.
If the assets or ongoing income are not sufficient, it probably will not be the desired care.
And there are differences. It starts with two-bed rooms, through catering, to the care service itself.

On the Property
1. Do you want to rent it out when the parents are no longer there?
2. Why take over the house now instead of building new or buying used?
3. Considering a care case, not leave the house to the parents for the best possible care?
4. If the parents do not need the house, the heirs can still sell it and have the money

Now
Brother is paid out, reducing your equity.
You build an extension – equity gone and a loan necessary.
What happens later with the extension?
Conversion of your part of the house fully financed by external funds

I understand the desire to pass on one’s savings. I only have my doubts whether it is the best for everyone.

Regarding care
The maintenance obligation of the children nevertheless remains.

Exactly, and that is why the accusation of antisocial behavior is unfounded. The children are then obliged to pay maintenance and contribute - within the legal limits of their financial capacity. That is something different from acting as a self-payer and - which would actually be unfair - being disadvantaged as a saver compared to the spendthrifts.

Exactly, and that is why the accusation of antisocial behavior is misplaced.

I don't think so. The parents' property will have to be consumed, whereas parental support from the children often only exists on paper due to high personal allowances. Especially in the case of owning real estate.

But it doesn't matter anyway, the plan is a castle in the air. Too little money.

Wow, a lot has really been written here. I will try to respond to many things. I hope I succeed. So, here goes:

I don’t find it antisocial. My parents worked hard for the house. We are definitely not wealthy but would classify ourselves as normal middle class. It is also intended that I take care of my parents as much as possible if the worst comes to worst. We actually mainly want to move in with my parents because we all get along very well and it would be a win-win situation for everyone. You can support each other and so on. Therefore, and for other reasons, we want to live right next to my parents if it can somehow be arranged. That’s why we don’t want to organize a condominium for my parents and for this reason we also don’t want to buy another house ourselves and, honestly, we don’t want to throw our money away. We once looked at a big house for €370,000 that we could have lived in together with my parents. But there would have been around €60,000 in incidental costs. We decided that we don’t want that. We have also considered buying land and building together, but with the last listing we were interested in, the land honestly cost €410 per sqm....

My parents are 60 and 65 years old and both retired and can just about manage the house with the running costs (i.e. without major repairs). They still have around €20,000 saved up. My partner and I earn about €3,000 and €2,600 respectively, although the €2,600 will hopefully soon be reduced due to family planning. By the way, we would have had no problems getting the financing commitment for the house with a total of €430,000 from the bank, but we didn’t want to go ahead with it ourselves. My brother is also very supportive of us in the whole matter and wouldn’t put any obstacles in our way at all. He would also very much like us to live next to each other, as he knows that then our parents would be well supported.

Actually, from the perspective, we had considered that we would then rent out the extension later when my parents are no longer around. Or rather, then reshuffle the seats, so that when we are older, we move into the extension and so on.

And now I am completely confused about what we should best do....

Is it possible that we pay my brother out later so that we have the money for an extension and the renovation of my parents' house? As I said, he supports us in the matter and would be happy if it works out. My partner always argues that his aunt and uncle got the house from his grandmother completely because they took on the duty to care for the grandmother no matter what. Even before it was clear whether she would be a care case or what would happen next. He thinks it could be the same for us, but I would find that very unfair to my brother. I want to hope that my parents will stay with us healthy for a long time, but it could be that they suddenly die someday and then without "work" the whole house automatically goes to me? I don’t think that’s right... This might be written a bit harshly, but just so you understand what I mean.

Sorry for the long text but many people really did reply. Thanks again for all the messages!

Have you ever taken care of a person?
Do you know what to expect?

You can surely find a solution with your brother. If necessary, as an interest-free loan