Home News I’m moving to Florida to be near my grandchildren. My daughter wants me to build a $150,000 addition to her house. Should I do it?

I’m moving to Florida to be near my grandchildren. My daughter wants me to build a $150,000 addition to her house. Should I do it?

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I live in the Chicago area and recently retired. My daughter and her husband live in Florida.

My wife and I have considered buying a condo in Florida to be closer to our grandchildren. But the upkeep and expense of two different residences is not something I want to deal with.

My daughter suggested that if we decided to move to Florida, we would make an addition to her house and use it every time we visited or lived there.

I’m willing to pay extra, but I’m not sure $100,000 to $150,000 would count as a gift that my daughter and her husband would have to report to the Internal Revenue Service and pay taxes on.

Also, I don’t foresee the marriage falling apart. If so, what rights do we have? What about property division?

man with family

big move‘ is a MarketWatch column that looks inside and outside real estate, from searching for a new home to applying for a mortgage.

Questions about buying or selling a home? Want to know where your next move is? Email Aarthi Swaminathan at [email protected]

Dear Family Man,

Congratulations on your retirement – what a milestone! I’m sure family is everything at this point in your life. Being able to see my children and grandchildren at any time is an irreplaceable luxury.

But it’s right to ask such questions about your living arrangements.

The easiest option would be to sell a house in Chicago and buy a condo in Florida, but they seem reluctant to go with that option. Now let’s consider your daughter’s proposal: to build an “extension” to her house.

Is your daughter proposing to build an attached housing unit (ADU) or are you thinking of building additional rooms?

In the former case, sometimes called grandma’s apartment or backyard house, you’re raising the value of the property, so you’ll probably be taxed. And as you mentioned, it can complicate ownership.

For those unfamiliar with this option, ADUs are small properties built beside or near the main residence and are a great solution for providing affordable housing.

John Geary, co-founder of Abodu, a startup that manufactures ADUs, told MarketWatch:

“This is a gentle way to add housing without changing the structure of our neighborhood,” he added. can be made smaller or larger.

But there are some potential complications, such as zoning laws that may prohibit your daughter from building your building, so be sure to check.

renovate my daughter’s house instead

On the other hand, if you’re talking about additions to your home, some Florida renovations can cost as much as $250 per square foot, Justin Pecarek, broker and owner of Orlando Property Advisors (boutique firm) ) told MarketWatch.

Again, adding $100,000 to $150,000 increases the value of your property, so you may incur taxes. Sorry, there is no way around it. Pekarek said tax assessors on closing permits will raise property taxes as assessments increase.

Your daughter and husband may also need to check in with the Homeowners Association to make sure the planned renovation is permitted.

If you want to prepare for the possibility of your happy marriage falling apart, Pekarek said things get a little more complicated.

Even if it is a separate structure connected by a common corridor, it is still considered to live on a single parcel or parcel of land. , there is no way to ‘divide’ the property and have two owners,” he added.

Getting back to my first point, it might be easier to just buy a condo. I think Plus, if your marriage doesn’t work out, you’re at a dead end between living there, living in Chicago, or living in your own Zen condo.

Plus, “taxes, HOA, and insurance for a $150,000 condo aren’t that high,” says Pekarek.so weigh carefully both option.

Family is everything. Given the freezing Chicago winters, I’m sure Florida weather is a big plus. In fact, if you look at everyone on Redfin.com,
RDFN,
+2.48%

Cheetown was the top starting point, according to those considering moving to Cape Coral, Florida. This third quarter report from real estate brokers.

But after going through such a complicated process, is it worth worrying about ownership and taxes for an extra room in my daughter’s house?

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