Buy First Home or Build Second Dwelling

Hi all,

I'm 29 and my fiance and I are ready to buy our first home.

Since I have expressed this plan, my family has asked for us to build at the back of their house (second dwelling). I am the only child on this side and have been told I will inherit this block, however I don't know if building a second dwelling is right for me right now. I know if we do, we will feel like we could never move again, yet alone sell it without causing family tension. I know this will be cheaper than buying another house further out from the city, but I don't mind the longer commute time and knowing my first home is my lot to do what we would like.

Is it best to broaden my horizon and buy elsewhere now? Is there any benefit to either option? When I tell my family and family friends I want to buy elsewhere they make me feel like that is a mistake, that I'm not utilising what will eventually be mine. Interested to hear viewpoints.

Thanks

 

If there is family tension, or even a remote possibility, you are FAR better off having the hard talks with family now and getting everything out on the table. It may feel awkward but much better than being stuck financially with no way out. Tell them you love them unconditionally but it is time to have some adult chats about the money. Express your concerns very clearly, how concerned you are about investing funds into an asset that you have no title to. How you would struggle to get finance for such an arrangement and why as a result you are thinking to go and purchase something on your own. Let them suggest alternatives or options and unpack them together. If you can find something that works, great, if not... go and do what you thought to do on your own. Your friends might mean well but honestly in my world they don't get a vote as it is not their money and they won't bail you out if things get ugly. Talk through all the "whatif" scenarios - including leaving or selling and see what the reactions are. Then you will have more info to make your choices.

 

Tell them you want to diversify and more land will mean greater gains in the future.

if your culture doesnt let you just do what you want, give them an argument they cant refute.

though also think about this. If you have kids, family close by is convenient. If you get along.