Buying investment house for parents to live in

[rapid]

My wife's parents live in an estate that has seen better days and they would really like to move. They are in their mid to late 60s. Their house is worth about €140,000. A decent house in a nice estate nearby costs about €230,000, plus stamp duty. They have not much savings.

Meanwhile, my wife and I would like to buy a house as an investment. Would there be any way to help my wife's parents to move into our investment house, say on cheap rent which they could pay for out of the sale of their own hosue?

If we were to go this route, what issues would we need to take into consideration?

We currently have a mortgage of €125,000 on the house we live in, which is worth around €500,000.

Thanks for any help.

 

[tiger]

I think there are three parts to this answer:1) do the no.s add up? I.e. can you buy, they sell, pay rent, cover the mortgage etc. I think you've given the basic no.s above. There might be other items like income, capital gains tax, perhaps carer's allowance to take into account?2) What happens if the objectives change? e.g. you decide it's no longer a good investment, want to free up the money to buy your dream holiday home? They decide they want to move to another area, or need nursing home care?3) Family. All kinds of complications can result from mixing family & money. It's implied you & your wife have a good relationship with her parents, what if this changes? What if your parents come looking for a similar helping hand? What if her siblings feel that in some way they're being done out of their inheritance?