Many saying that its akward and there is no privacy in living in with the inlaws, which is true to some extent. But what many dont see is the advantages especially when you have kids.
When I was expecting my first, my inlaws stayed with us (who actually live in America), and it was a great help to me during my pregnancy and after the birth. My mother in law helped me out with alot of things which maybe my husband would not have been able to help me out on, due to his long hours at work.
You should always see the advantages and not just the disadvantages.