Long story incoming.
Not in the US, so I don't necessarily need or probably even can use advice from a legal standpoint but definitely from a financial one.
My parents divorced 15 years ago and my father got to keep the house and bought my mother out, however as a stipulation of the sale, my father cannot re-sell the house or put a mortgage on it, unless my sister and I waive the clause.
The house is located in a boom-city in Europe and in the most affluent area of the city. Housing prices have exploded over the last 20-30 years and not even the financial crisis made much of a dent. The house itself is worth roundabout 1.5 million and its not coming down again barring any major uproars in the economy. A large family home with roughly 2500 sq ft. of living area and 7000 sq ft. of garden area, 2 car garage, etc.
My dad has since re-married and this is where things are getting somewhat complicated. Due to the inheritance laws in my country, his (new) wife, my sister and I would each be entitled to a third of the inheritance. My father would like to retire ideally somewhere else, such as in southern France or Spain and therefore sell the house in my home country.
Now in order to waive the clause, he offered my sister and I cash upfront to buy-out our rights for any future home inheritances.
He offered 350k for each my sister and I, to be paid 2/3 now and the rest in installments over the next 7-10 years.
On the one hand, I am very much aware that current cash on hand is better than future cash value.
On the other hand, while 350k is a damn lot of money, in my area that is going to buy me a modest 3bedroom apartment tops. Even as a down payment for a new similarly sized home that would leave me with mortgage payments of close to 40% of my monthly net income.
My dad is in his mid 50ies and thus will not retire for another 5-7 years, any inheritance will (hopefully) come at earliest in 20-30 years as I hope my dad will live for a long-ass time and since I don't want to come across as a vulture but merely exploring my options as to his offer.
Due to my dad being re-married and his wife holding a third of the inheritance rights, my sister and I would then have to buy-out my dads wife or her daughters inheritance share later down the road, which again would require me to put a mortgage on the house anyway in 20-30 years where I then would be in my 50ies. Also, my sister and I would need to figure out what to with the house and either one lives there and buys out the other or we sell and just then take 50/50 of the sale price.
I am gravitating towards accepting his offer, mainly because the NPV argument and me having to buy-out the remaining share down the road, the but I am not sure if I have considered all pros and cons or perhaps other options to this.
Any help is greatly appreciated.
EDIT:
There are no taxes on inheritances or gifts in my country, just regular property taxes for home owners.
Submitted January 05, 2019 at 08:54AM by throwawaythathouse http://bit.ly/2Ay2C15
