Retirement Income

Fri, 8 Jun, 2018Danielle McCarthy

5 questions to ask before moving into a granny flat

5 questions to ask before moving into a granny flat

If managed correctly, a granny flat arrangement can turn into a win-win scenario for all parties. It can also turn sour fast. If you’ve toyed with the idea of entering into this sort of arrangement, it’s important to make sure you’re aware of the implications.

Here are five questions to ask before moving into a granny flat.

1. Am I really ready to live in a granny flat?

While often in these situations you still have plenty of your own personal space, there is going to be a loss of independence to a degree. It’s important to ask yourself if you are really willing to give up this space when moving in with your family.

2. Is my family really ready to live with me?

It’s not pleasant thing to think about, but the harsh reality is there may be some parties who are not altogether pleased with the situation (even if it seems like they are on the surface). It’s always worth having a frank discussion with all the parties that are affected, and asking them if this is arrangement is indeed willing to go into. 

3. Is my pension going to be affected?

Depending on the arrangement you enter into, moving into a granny flat can affect your pension entitlements. It’s important to check with the Department of Human Services and a financial professional about the ramifications of making this move, and ultimately whether or not you’re willing to live with them.

4. Have I formalised the agreement?

This may seem like adding unnecessary red tape to the arrangement (especially when you’re dealing with family), but formalising the agreement can go some way to avoiding conflicting. Getting the rights and responsibilities of each party down on paper is the best way to manage expectations and ensure no one is given the short end of the stick.

5. Do I have a backup plan?

If things do go awry you don’t want to be left high and dry. It’s important to have a backup plan up your sleeve just in case the worst does happen, and you can be sure you’re in the best position possible to recoup and ultimately recover.  

Have you moved into a granny flat? Or perhaps you know someone who has? What do you think about the arrangement? Let us know in the comments below.