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My advice • August 05, 2020
modified on August 06, 2020

Project: Intergenerational homes

Are you close with your kids and grandkids and are thinking about moving in with them? Here are a few things to keep in mind.

How living together can bring your family closer

Grandparents play an important role in their grandchildren’s lives. The expression “it takes a village to raise a child” shows their invaluable contribution. A good first step in building a more harmonious relationship with your kids is to have an honest discussion with them. Talk about how you can support them in raising your grandchildren—a role that’s sure to keep you on your toes! If you’re looking to get closer to your kids and grandkids and are thinking about moving in with them, have an open conversation as a family. We’re living in uncertain times. An intergenerational home is an appealing alternative to living in a senior’s residence for many people and promises to grow in popularity moving forward.

Being financially prepared is key

One of the first things you need to think about when you retire is what kind of home you want to live in. Moving in with your kids can be a great option for everyone involved, but you need to plan ahead for such a major life change. There are a lot of factors to consider—purchasing a home, the neighbourhood, proximity to services, your health and also the financial impact.

A joint parent-child project like moving in together involves coming to shared agreements and weighing up the different financial considerations. For example, if you move in with your child and their family as a tenant:

  • The rent you’ll contribute could make it easier to get approved for a mortgage.
  • If your rent isn’t written into the mortgage agreement, the home will be considered an income property for your child, which will have implications when they sell the house.

If you become a co-owner with your child, you’ll need to consider the following:

  • Capital gains exemption will be determined by the proportion of the home each party occupies.
  • You should consider entering into an undivided co-ownership agreement (declaration of undivided co-ownership) with your children before a notary.

Several municipalities and provinces have programs to support intergenerational home conversion projects. Are you familiar with yours?

A personal financial advisor can review your financial situation and help you figure out whether moving in with your kids is realistic based on your respective assets and income. And they can help you decide which buying options and living situations are best for all involved. Together, you can go through all the different options and turn your retirement dreams into reality with your loved ones.

Best of luck with your family project!

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