Multi-Generational Housing is the future?

[TheVig]

So lately in my various social media feeds, I'm seeing realtors using use a different type of marketing strategy to get people into a mortgage.

 

Multi-Generational housing. Mom, Dad, the grown kids, and their kids all stay under one roof to make the cost of home ownership more affordable, because more people are contributing to the mortgage payment.

 

I have a friend who is a realtor. I asked him, how much longer will it be until we end up like Japan........... 80 year mortgages, and if things work out, the great grandkids will be the ones who eventually pay it off. All he had to say was it's coming, some day sooner than later. He said the realtors, bankers, builders, and law makers will get it figured out.

 

 

[liverichly]

I haven't seen any extra long mortgages like I've heard are in Japan, but I've definitely noticed an uptick of people buying homes with family - kids going on mortgages with their parents, etc. where they all live in the same home.  Usually first time homebuyers, with the goal of the kids eventually moving out buying their own home once they've gotten into higher paying jobs.  The longer mortgage terms would help lower the monthly payment, but a 30 year vs. 60 year term just reduces the P&I portion of the payment by about 15%.  Interest only loans are available today and offer a greater discount on payments, but the interest only period ends after a certain amount of time and then mortgage convert into principal & interest which will have significant payment shock if just interest only payments had been made.

[8ball]

After several hundred transactions I've only done 2 that were multi-generational from the start. I've done quite a few where they wanted an extra bedroom for an eventual family member.

I can imagine in more expensive housing markets, like San Francisco, mult-generational is probably more common