I am considering participating in a new program my employer has to buy a
home in my employer's area with financial assistance on their part.
Unfortunately, the homes I could afford are real fixer uppers and the
neighborhood is high crime. I am single (but that might change one day).
I have no kids. I live in a small apartment in a suburban area now. I
also want to live in larger quarters very much.

My folks are dead set against my idea because of high crime in the area
I am considering. My parents made me an offer that's tough to refuse. My
dad's 81. My mom's 69. I am 46. They want to essentially put down what
would contribute a large down payment toward of the cost of a house, put
it in my name, and we would share it. I would make the mortgage
payments. We would share utilities.

My parents offered to sell their modest row house and use it and a large
investment that comes due in 2008 for this purpose. My job is good and
my FICO score is high, so making the mortgage payments is not a problem
for a house my folks and I would want in the area my parents have in
mind.

This deal works out in my parents' favor because they have a large fund
that's due to pay off in a few months and they would live in a nicer
neighborhood and a nicer home. When my dad (who I expect to outlive my
mom) needs nursing care, we will have the means to provide it in-house.
My dad has met with his financial advisor, and this is the idea they
came up with.

My mom also desperately wants to move because she's tired of living in a
row house. My dad also thinks the neighborhood where they live now is on
the decline so they both want to move to a nicer neighborhood.

So the idea is that they would "do whatever it takes" (quoting my dad)
to get me into a nice house in a safe neighborhood next year, but that
we would buy a house that's large enough to have my parents and I live
there, but in separate spaces (like an in-law suite). My dad will do the
preliminary shopping for the house. My parents also want to have final
approval of the home and the neighborhood. I can live with those
conditions.

My dad is a home builder by trade and he did certified home inspections
part time, so he's more than qualified to shop for houses. I would have
a lot of input into the decision, of course. Another down side is, it
would increase my commute to work, but it would be tolerable, around 45
minutes each way. My daily commute now is around 20 minutes.

I have been living outside my parents' house since age 21, which is more
than half my life. I was sick a few years ago and I stayed with my
parents for tree weeks to recover, at doctor's orders. During that time,
we got along fine.

I have one younger sister. Knowing my parents, they discussed this idea
with my sister and her husband before telling me about it. She and her
husband were there when my parents proposed this idea to me. They are
fine with it. They said they are not concerned with my parents giving me
this money and that when the time comes, we can make a deal if my
parents have any money left over in their estate. My sister,
brother-in-law, and I are very close, so no rivalry there and they both
are professionals with a good income.

The question I have, is sharing a house with my parents a good idea from
an emotional standpoint for the three of us? Has anyone done this? My
sister's a practicing clinical psychologist. My dad made this proposal a
few days ago, so I haven't had time to talk with my sister about it
privately. I imagine she would have said something if she thought it was
a bad idea (she's very vocal and opinionated). I plan to talk with her
about it, but she was not available when I called last night.

So what would you do in tis situation?