Retirement Villages & Granny Flats

Choices about where to live are driven by lifestyle, work and family. As a person ages these choices start to be impacted by health or increasing levels of frailty. And this may necessitate a change.

People may consider downsizing to alternative accommodation arrangements instead of living in his/her family home. One option may be to consider a retirement village, and another may be a granny flat arrangement.

Retirement villages

Retirement villages are an independent living option. They may have communal facilities (library, games room, swimming pool, etc.), organised events, and are often located on landscaped grounds. The type of accommodation may vary and could be a unit, a villa, or an apartment.

Some villages also offer serviced units, where residents may be provided with meals, house-cleaning, laundry and some personal care, (at an extra cost). If not offered by the village, care and everyday living support must be arranged and paid for separately.

In most cases the person does not own their residence. The person buys the right to live in a retirement village under various types of contracts.

Generally, the government does not help with any of the costs. Support at home can be delivered in a retirement village setting for qualifying persons. Rent assistance may also be payable to eligible people.

Granny flat arrangements

Granny flats normally conjures up images of a small unit in the backyard of a child’s family home, where older parents can live. But from a Centrelink/Veterans’ Affairs perspective, a granny flat interest is a much wider concept.

It covers private arrangements where a person transfers money and/or assets (including property) to someone else, in exchange, for a lifetime right to accommodation.

Granny flat arrangements are created in one of five ways:

• Transfer the title of the home to someone

• Buy a home in someone else’s name

• Transfer money and/or assets to someone

• Pay for renovations or an extension to someone else’s home

• Pay to build a stand-alone granny flat in someone else’s backyard

  
  

In exchange, that person gives your client a lifetime right to accommodation in a private residence.

If you would like to chat about how different downsizing options will impact your financial entitlements, please reach out for a chat.

Bill Savellis

Senior Financial Adviser

Having navigated the Aged Care landscape for both of his parents, Bill understands how challenging it can be to make the right decisions for your future care needs. That's why he believes that everyone should have access to financial advice during this time. Bill has been a Financial Adviser for over 22 years, and is passionate about helping others access the financial advice they need. Drawing from his own experience in the financial sector, Bill develops strategic, personalised plans to support transitions to Aged Care or Home Care.

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Disclaimer: Prepared without taking into account your objectives, financial situation or needs. Before acting on any information in this article, Olive Grove Financial Advice recommends that you consider whether it is appropriate for your circumstances. Information in this article was correct and current as of 8 October 2024. Olive Grove Financial Advice is operated by Bill Savellis through The Financial Advisor (Australia) Pty Ltd ABN 72 619 546 431, who is a Corporate Authorised Representative (No. 1278394) of Havana Financial Services Pty Ltd.