Tag Archives: housing

A granny flat at dusk.

Downsizing decisions need care

Lower interest rates and increased demand are pushing up the cost of housing in Victoria. In addition, the financial pressures of the COVID-19 pandemic have meant that some families are suffering financial hardship and are considering ways in which to consolidate their financial positions 

At times like these, older people might think about downsizing or living with their family. That might mean living in a house owned by family, or family moving into a house owned by an older person. Another option is to build a self-contained unit on land that includes the family house.  read more

An older woman stands at a window.

Case Study 1: Investing in a self-contained unit

Jan 

After the death of her husband five years ago, Jan felt isolated and lonely living alone at some distance from her family. Janher daughter Marie and her son-in-law Paul discussed Jan moving closer to them and being available for her grandchildren after schoolgiven that Marie and Paul struggled to get home from work until later in the evening. Jan also had some health issues and she wanted to be living somewhere she could get support if required. 

Jan sold her home and spent $120,000 building a self-contained unit on the property owned by Marie and Paul. Marie and Paul also insisted that Jan give them $85,000 in return for them providing her with a home for life and care as required. Marie explained to Jan that by providing the $85,000 to them Jan would be complying with Centrelink rules and would not lose her pension  read more

Case Study 2: Investing in family property

Diane 

Diane sold her home. She then contributed $250,000 towards the purchase of a large property shared with her daughter Nicole and son-in-law DavidDiane’s contribution was one quarter of the purchase price. 

Diane had a wing of the house for herself which included a bedroom, lounge and bathroom, but she shared the kitchen with the rest of the family. Diane’s financial interest was not listed on the property title because Nicole had said that she would not be able to get a mortgage on the property if Diane was on title.   read more