Granny is Flat

Dear Scott,

I am a 79-year-old retired lady, still active. I own my unit in Bentleigh, worth maybe $800,000. My son wants me to sell it, knock down their slum in Chelsea Heights, and build a place for all of us with a granny flat. I am unsure what to do -- I do not want to be out on the street should anything happen. What is your advice?

Carol

Hi Carol,

I think you sound like a very smart lady, and I wish more people asked questions like this.

Your son is proposing what’s called a ‘granny flat interest’, which basically means you’re paying for the right to live in the new place for the rest of your life, with your family looking after you. Even better, depending on your situation, it may not affect the age pension.

However, like anything involving family, things can go a little Gina (Rinehart). After all, we’re talking about a 20-year decision here. What happens if you decide you don’t want to continue living with each other? (And, if you have other children, what will you leave them?)

That’s why I’d like you to get some independent advice on this. Not because you don’t trust your son -- but because your relationship with your family is too important to leave anything to chance. As a first step, I’d suggest calling Seniors Rights Victoria on 1300 368 821 and speaking to one of their community-based solicitors.

Scott