You and your elders living under the same roof may seem like an ideal solution. But beware! This decision deserves careful consideration.
There are many reasons why people find intergenerational homes attractive: coming home to a spotless house and home-cooked meal after a long workday; being able to keep an eye on an aging family member; always having someone available to babysit the kids; spending more time together as a family; sharing knowledge from one generation to the other.
But even if the advantages are enticing, you must be vigilant; the irritants can quickly pile up! In order to get the whole picture, RE/MAX has decided to present a realistic and unflinchingly honest account of this type if living arrangement.
Appearances Can Be Deceiving
According to the government of Quebec’s website, an intergenerational home (also called multigenerational or bi-generational) is defined as a single property which also holds an independent unit allowing many generations of the same family to cohabit all while maintaining their privacy.
However, each municipality has its own particular list of criteria for a home to be considered as such. And they can vary so wildly that it will make your head spin! For example, in some cities the surface area allocated to the parents’ unit cannot exceed one third of the property’s total square footage. In others, the unit must be separated by a fire wall or the exterior finish must be the same for both sections. Certain communities want the secondary apartment to have its own address and a separate entrance. And we could go on!
The important thing is to understand that just because a property looks like a multigenerational house doesn’t mean that it legally is. Make sure you get all the facts before buying or renovating to avoid finding yourself high and dry!
Will You Save or Have to Spend?
At the outset, living with your parents may seem like a smart financial decision. Sharing expenses, such as the mortgage, the Internet connection, snow removal and other services is certainly an advantage. Not to mention avoiding the high cost of residential homes for seniors. And yet, rarely do the savings surpass the expenditures that come with this type of property.
For example, if, on the one hand, you decide to renovate your single-family home to add an independent apartment, expect to invest between $25,000 and $100,000. Moreover, this addition will inflate your municipal taxes. It will also negatively impact resale opportunities as multigenerational homes tend to stay on the market longer.
On the other hand, if you decide to purchase an existing intergenerational home, understand that they are more expensive (selling on average for up to 15% more than an equivalent property). If you instead opt for a new build, get ready to pull out your cheque book because an extra unit, of course, means two kitchens, additional insulation, more extensive landscaping, etc. In either case, make sure you put some money away in the event that your aging parent’s health status changes. Could you cover the cost of installing an access ramp for a wheelchair or of a home-care nurse?
While all these costs might put many people off, there is a way to make this lifestyle choice a profitable one. Especially if you cohabit for several years. Crunch those numbers!
Available Subsidies
There exist no tax credits or subsidies for building a new home that you can share with your elderly parents. However, you might be eligible for different home modification programs. Firstly, the Quebec and Canadian government offer tax credits for home renovation. There are also several tax credits available for informal caregiving or for a child sharing their home with a parent that is aged 70 years or older (or 60 years old if they have a handicap). Likewise, there is a program to help homeowners adapt their property to the needs of people with diminishing abilities. Ask you city or government for more information.
Avoid Catastrophe
Welcoming your parents into your home is first and foremost a decision made out of love. But despite all that, it can still turn into a nightmare. Disputes, exhaustion, disappointments, unpleasant surprises can intrude into what was supposed to be an idyllic project.
Our advice is to hold a meeting between all future “roommates” and put down everyone’s expectations in writing. Setting clear rules, without any embarrassment, is the key to success. Will we be allowed to drop in on each other without calling? Will we have to stop making noise at a specific time? Who will look after the lawn? Who will pay for what? What is Plan B if the caregiver no longer has enough energy to fulfill this role? If a conflict arises, this signed agreement will calm the storm.
Did You Know?
- Despite the aging population, intergenerational homes are not as popular as one might think. Elderly people who want to sell their property tend to prefer moving into condominiums.
- According to the FCIQ, for 2013, only 951 transactions for intergenerational homes were carried out using the Centris® real estate brokers system. However, this number is rising.
- According to a survey commissioned by the Conseil des aînés du Québec and the Chambre des notaires du Québec, nearly 20% of parents aged between 60 and 79 still live with one or more of their children (which does not necessarily mean that they are sharing a multigenerational home).