The power of the granny flat

Australia’s population has been aging for decades; a trend that continues to accelerate as life expectancy grows and young couples delay parenthood in favour of lifestyle.
 
As a result, accommodation for the growing elderly demographic is likely to become an increasingly vexed question. There’s only so many spots available in aged care facilities; many of which are too expensive for retirees without a strong superannuation or asset base.
 
For elderly people who have reached the stage of life where they need regular assistance, this can present a frightening predicament. And often the most obvious and comforting solution can be the most hazardous.
 
There is a growing trend of well-meaning children taking a parent or parents onto their property in a backyard granny flat.
 
The appeal to both parties is obvious. The older generation continue to enjoy a large degree of independence, while having their needs and personal security catered for by their nearest and dearest. The younger generation avoid the guilt of shipping their parents off to a nursing home, and, in many cases, receive a financial reward in exchange for their munificence.
 
Parents who move in with the kids will often pay their way; either through a contribution to the mortgage or by funding the construction of their new home: the backyard granny flat. These commitments can be made by exhausting their own assets – selling the family home is the most common example – and thus leaving themselves with nothing but a smaller roof over their head they don’t even own.
 
Such deeds are given through love and good faith. Sadly, they can quickly turn bad. A family split such as the separation of the younger couple can leave the parent or parents completely exposed to losing everything and being effectively homeless.
 
It doesn’t have to end like this. Good intentions can be assured of fair outcomes while they are accompanied by sound advice and watertight agreements. Although Granny Flat arrangements are between close family members, it can’t be assumed the parties won’t suddenly duke it out like embittered strangers the moment things turn sour.
 
If you’re considering moving onto a child or relative’s property to offset the demands of older age, it’s best to be fully informed before doing so. Our experts at Tonkin Drysdale Partners can point out the risks and erect proper safeguards to ensure the next stage of your life is secure no matter what the future holds.