Advice on existing residence

[Yevgeny Ioffe]

Hello,

My parents have owned a single-family property ever since 1996 as their primary residence. It's built in 1920s, located in Newton, and it's in a poor condition. They're thinking of tearing it down and redeveloping the entire site (the lot definitely allows for 2, even 3 townhomes to be built).  I personally think it would be easier to sell it to someone to redevelop, and take the money to buy a retirement home (house or condo).

The risks and obstacles in their plan are as I see them:

• Amount of financing required to make this happen, first to demolish, clear the debris, prepare the site for construction - not mentioning the requisite permits required, and hiring the competent crew who'll do the job in time and within reasonable cost parameters. Then more financing to actually build the house(s) up.
• The costs of this project probably far outweigh any potential profits they would realize on this.

Thoughts?