In the context of globalization, more and more families are no longer simply viewing real estate as an investment tool or a place to live when planning overseas property purchases. Instead, they are trying to combine “education, living, asset allocation, and division of labor among family members.” The “parents buy a house + children live there + partial rental” model is a hybrid property use model that has gradually gained attention in this context. It differs from pure investment rentals, and is not equivalent to complete self-occupancy. Instead, it involves functional division within the family to achieve a balance between residential stability and asset efficiency. On the surface, this model has multiple advantages: children have a stable residence, parents achieve asset allocation, and partial rentals share holding costs. However, whether it is “suitable” cannot be simply judged from the perspective of returns or convenience. It requires a comprehensive assessment of multiple aspects such as “legal compliance, family structure, residential safety, long-term planning, and management capabilities.” Especially when different countries and cities have different regulations on residential use, rental behavior, and family member living relationships, this model may be a sound arrangement, but it may also hide complex risks.
Why has this residential and investment portfolio emerged?
The emergence of this model stems primarily from the differing practical needs of family members at different stages of life. Parents typically possess strong financial capabilities and an awareness of asset allocation, while children face stages of learning, living, or entering the workforce, requiring a stable residence and a safe environment. Parents purchasing property reduces the uncertainty of renting in different locations for their children and invests funds in relatively stable tangible assets. Simultaneously, housing size or layout often exhibits “redundancy,” such as vacant space in multi-bedroom homes when only one or two children reside there. Partially renting out these unused spaces to convert them into rental properties has become a natural choice for many families. This approach also aligns with the principle of “improving asset utilization efficiency” in property management.
Is the boundary between owner-occupancy and rental clear?
The core issue of “partial rental” lies in whether “the same residence can be used for both owner-occupancy and rental simultaneously.” In some countries and regions, residential use is strictly limited to single-family residence, especially in low-density residential areas or specific community planning, where there are clear restrictions on subletting, shared rentals, or non-family members residing in the property. Even if renting is legally permissible, there may be requirements regarding the form of rental, such as whether room-based rentals are allowed, whether non-relatives are permitted to share the property, and whether separate registration or filing is required. For families where children live in the property themselves, frequent tenant changes and significant differences in schedules can negatively impact the living experience and sense of security, thus undermining the original intention of “ensuring the children’s quality of life.”Therefore, it is crucial to clarify whether the owner-occupied nature of the residence will undergo legal or managerial changes due to rental activities, and whether such changes will affect the family’s expectations.
Who Bears the Actual Operational Pressure?
“Parents buying a house” does not equate to “parents managing the property on-site.” In reality, parents often do not live with their children long-term, and the daily use of the property, neighborly relations, and tenant communication are highly likely to fall on the children. This raises a crucial question: Do the children possess and are willing to assume this role? For children who are studying or just entering the workforce, the additional management tasks may become a burden, even affecting their studies and life rhythm. If managed by a third-party organization, costs will increase, and issues of authorization, communication, and responsibility allocation will arise. Furthermore, in the event of rental disputes, facility damage, or neighbor complaints, the attribution of responsibility and the methods of response need to be clearly defined in advance. Therefore, this model is not “automatic” but places higher demands on the family’s collaborative abilities, communication mechanisms, and division of responsibilities.
Temporary Suitability Does Not Equal Long-Term Suitability
The “parents buying a house + children living in it + partial rental” model often has a clear phased characteristic. For example, this model may be relatively reasonable while the children are in school; however, as the children graduate, change jobs, or the family structure changes, the housing needs will also change. At that time, whether to convert to full self-occupancy, full rental, or sell for cash will require replanning. If sufficient flexibility is not reserved at the initial stage of purchasing the house—for example, if the house type is too special, there are many legal restrictions, or market acceptance is limited—a passive situation may be faced during future adjustments. Therefore, judging whether this model is suitable requires not only considering current needs but also assessing its convertibility at different stages in the future.
The “parents buying a house + children living in it + partial rental” model is not a universally applicable all-purpose model but a combination solution that places high demands on family conditions, institutional environment, and management capabilities. It has a certain degree of rationality, but only on the premise that it is legally permissible, that the boundaries of residence are clearly defined, that the roles within the family are clearly defined, and that there is sufficient anticipation of future changes. If the family views this model as a phased arrangement and plans the rental method, management approach, and exit strategy in advance, then it may be possible to achieve a balance between housing security and asset utilization for a certain period of time. Conversely, if the focus is solely on “increasing returns” or “reducing costs,” while ignoring compliance, living experience, and long-term adjustment options, it may bring unnecessary risks and pressures.
