The 21-year-old country singer is said to have bought the three-bedroom, 5,000 square-foot estate in Nashville for Andrea and Scott Swift.
According to Us Magazine, the 1920s built property boasts a blue stone terrace and a massive outdoor fireplace.
'It's an incredible house,' a source said. 'Taylor's been visiting her parents there and she's so excited for them.'
The Grammy award winner, who splits her time between Nashville and California, has also invested in a Los Angeles home for herself.
A second source explained, 'She is in LA so much - and she was paying a fortune in hotel charges.'