I am hoping someone can provide some advice. I have recently come into some money thru the sale of a business. My parents are retired (ealry 60's) and we wish them to move closer to my family…but not to close!
They are living in an over 55 village at present. Their property (owned) is worth about $220,000. They live on a pension. I would like to purchase a property for them near my family (in a 55s village as they enjoy this lifestyle), and have it perceived as an investment, and have them "rent" it off me. This would leave them with $220,000 to invest in term (possibly) that will provide a bit of extra cash.Could anyone provide an alternative (legal) spin on this that would work well for all involved?
A couple of points to consider: do they want to move? Are the other residents of the villages closer to yourself a good match with your parents? Will moving upset your parents due to the friendships they have made in their current village? (Old folk are funny that way, familiarity and security is just as important as being close to family).
How will the sale of the property affect their pension?
Hi Scott. Yes they want to move. I am not sure how this will affect their pension, however I am of the opinion that an asset of this minimal amount wouldnt affect such.
It may be time to speak to a financial planner regarding the changes
Double check on the sale of the property. As they would then have cash in their account (or elsewhere) it may be considered "income" and impact their pension. My MIL recieved a compo payout ($70K) and her pension was restricted ($70K divided by pension rate = number of years she was considered to not require the pension).
As a suggestion, call up and ask if they sell their home and move in with you, are they still able to get their pension. Names would not need to be used so it may give you some more info.
MickIt should not effect it as much as long as you have a proper Tenant agreement drawn up and bond paid and make sure you collect and receipt rent so they can still file their tax returns, but yes a financial advisor is a good idea
They are living in an over 55 village at present. Their property (owned) is worth about $220,000. They live on a pension. I would like to purchase a property for them near my family (in a 55s village as they enjoy this lifestyle), and have it perceived as an investment, and have them "rent" it off me. This would leave them with $220,000 to invest in term (possibly) that will provide a bit of extra cash.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
