Most of us want to live in our own home for as long as we can, whilst we are able to live independently. Retirement village and nursing home care is usually very basic or very expensive, and often both. Living at home close to family and where you know your neighbours, is usually a much better option.
As health and mobility begins to falter, home care providers can help prolong time living at home. The cost of living at home with private care is still far cheaper than retirement or nursing home costs.
When home is no longer a viable option, living with offspring may be considered, except living “under their feet” may be too much. Building under the house or a granny flat out the back could provide a degree of independence and separation, whilst living close and handy you. Private home care can reduce the burden on offspring.
Within certain limits, gifts toward the cost of setting up the granny flat are exempt from pension gifting rules. This can significantly reduce nursing home bonds when that time comes. The arrangement must be documented to lock in the right to reside in the flat. There should also be agreement on what happens if the property has to be sold (with the granny flat) due to unforeseen circumstances.
A granny flat arrangement can provide a better quality of life, save a great deal of money and when no longer needed can be used for a uni aged grandchild or rented through AirBnB.
If you would like further information on documenting your granny flat arrangements, please contact us to arrange an appointment.