The recent Housing Affordability Report by the Real Estate Institute of Australia shows WA remains one of the most affordable states in the country for housing. Despite a softening in the Perth real estate market and the median house price down to $525,000, why is home ownership still not attainable for so many?

Why is Home Ownership still not attainable?

Possibly because the median income for Perth households is recorded as $85,700?  Assuming that a household can save a 10% deposit, sign up for a 30 year loan at our current average 5.58% interest rate and then spend a third of their income on mortgage repayments… they should be able to afford a house around $415,000.

There is quite a gap there between what the median household earns and what the median house costs isn’t there!?

Increases in Multi-generational Households

Perth’s Granny Flat Specialist believes this is one reason why we’ve seen an increase in multi-generational households. Adult children remaining in the family home well in to their twenties and thirties…  Young families opting to live with their older parents… Or single parents relying on their own mum and dad for some financial assistance.

Building a granny flat can be a great stepping stone to home ownership.  From as little as $90,000 you can have a small home of your own…  A free standing, self-contained dwelling that is ready to move in to.

Granny Flats are more than just an Affordable Solution

Granny flats are not only affordable but they offer families space, independence and privacy. Two families living under one roof can sometimes cause stressors and strains in the relationship; requiring exceptional communication, constant negotiation and a high level of trust and respect.  Having individual space and separation can often solve these issues and offer a more relaxed and harmonious living arrangement while still being close by.

If home ownership is currently out of reach for you or someone you know, then feel free to contact Perth’s Granny Flat Specialist to see if we can design something to suit your needs. (08) 9284 7778

How do you know you’re working with a professional builder? Select the right builder and you will have a pleasurable experience, choose the wrong builder and it can be a heartbreaking and costly lesson. Find out the seven crucial questions you must ask. Click the book above to DOWNLOAD NOW.

How do you know you’re working with a professional builder? Select the right builder and you will have a pleasurable experience, choose the wrong builder and it can be a heartbreaking and costly lesson. Find out the seven crucial questions you must ask. Click the book above to DOWNLOAD NOW.

Since the 1980’s the number of multi-generational households in Australia has been on the rise.  Particularly in the metropolitan areas of our major cities, it is now estimated that more than 25% of Australians live with two or more generations under the same roof.

There are several factors contributing to the increase of intergenerational households, many of them surrounding the delay of young adults leaving home… or what’s colloquially become known as ‘failing to launch’.

Multi-generational living is increasingly being used as a way to overcome affordability issues as young people rely on their parents for financial support well in to their 20’s and 30’s.

Higher Education

With employers demanding highly educated workers, more and more young people are undertaking post-school studies increasing the number of years they spend in education.  With undergraduate and postgraduate qualifications becoming common, young people are delaying their entry in to the workforce and decreasing their short-term financial prospects.

Other Factors

Higher education is however not the only reason for multi-generational living arrangements.   Other factors seen regularly extending young people’s stay in the family home include:

  • Unemployment and workplace volatility
  • Delayed partnering
  • Health issues, particularly with the prevalence of anxiety and depression
  • cohabitingSustained growth of the Australian property market has also meant that home ownership has become unaffordable for many. This can also be seen through the reduction in the number of first home buyers entering the market.
  • The increase in the cost of childcare has seen many young families identify grandparents as a more affordable alternative.

So if you have a kipper, twixter, freeter or boomerang child you may want to come to terms with the fact they be hanging around for a little while longer.  Or maybe you should be prepared for when they want to return!  In any case contact Perth Granny Flat Specialist to find out how a granny flat might benefit you! (08) 9284 7778

How do you know you’re working with a professional builder? Select the right builder and you will have a pleasurable experience, choose the wrong builder and it can be a heartbreaking and costly lesson. Find out the seven crucial questions you must ask. Click the book above to DOWNLOAD NOW.

A granny flat interest is established when you exchange assets or money for a lifetime right to reside in someone else’s property.

This means you could transfer ownership of your home but retain the right to live there for the rest of your life. Or you could transfer assets, such as money, for the right to live on someone else’s property for the rest of your life.

Having a legal document drawn up by a solicitor is definitely recommended for these situations. Evidence of the arrangement can help to prevent problems in the future should either party’s personal circumstances change or the relationship sour.

An agreement could cover who does what for the other (eg. cooking and cleaning), who pays the bills, what happens if your health deteriorates and care needs change, or how you will be compensated if the property owner cannot maintain your life interest.

A granny flat interest cannot be revoked because the owner wishes to sell the property. They may:
• Sell the property with your arrangement as a condition of sale,
• Transfer your interest to another property, or
• Compensate you financially for losing your granny flat interest.

A granny flat interest only exists during your lifetime though and cannot form part of your estate. It is therefore important for people to address their estate plan when entering to granny flat arrangements to avoid disputes down the track.

To find out more about Granny Flat Interests read our previous blog and contact Centrelink.

To find out more about building your dream Granny Flat, contact Perth’s Granny Flat Specialist today! (08) 9284 7778

With the cost of living getting higher and people living longer, having multiple generations all living together is a reality for some Perth families.

That is one reason why more people are turning to granny flats as the best way to create a multi-generational household.  However there can still be issues even being 10 metres away from each other!

Are you thinking about building a granny flat but don’t know where to start? In this FREE GUIDE you will find great information about whether your property is suitable, how to choose the right builder for you and the steps to a successful building experience! You need to read this!

Here are some tips to make multigenerational living a happier experience for everyone…

1. Know WHY this arrangement is in place. Every living arrangement has its benefits and drawbacks, and in order for it to work, the benefits must be recognized and outweigh the drawbacks. Discuss the the different circumstances with your family so that everyone is on the same page as to why you are living so close to each other.

2. Define the responsibilities surrounding those who need to be cared for. Does anyone in the family have health issues that need to be addressed, such as an elderly parent needing special care, or a child with learning disabilities? If their care is home based, which of the other family members are primarily responsible for this care?

3. Discuss boundaries as a group, as they must be respected by each household member, from the youngest to the eldest. Address your concerns about privacy. It can be hard to have privacy in this living situation. Make sure everyone understands the importance of privacy, and have consequences for anyone who invades anyone’s privacy in any way, whether it’s the Internet, your diary, going through personal belongings, and even listening in on phone calls.

4. Set acoustic boundaries. It’s likely that at least one person will enjoy hearing loud music or even television. Tell those who want loud music or television to use headphones.

5. Let parents raise their own children. If the adults do not remain mindful of each other’s rights and responsibilities, homework can sometimes be a source of discord in the house. What causes problems is a non-parent adult’s sense of how far they should be allowed to go in deciding what is best for children. It’s especially important for grandparents, not to counteract the rules you’ve set for your own children.

granny flats perth6. Call a family meeting if there is a problem you think needs discussing. If it is a more personal problem, take the other family member aside and discuss it quietly. As mentioned earlier, there should be a time and a place where any family member can have privacy. It is under those circumstances that many personal problems can be addressed and resolved before they erupt into a major conflict.

7. Spend quality time together as a family. Have one day and/or night a week of fun for everyone!

Follow these tips and that will hopefully ensure a happy living situation for those in both the primary house and the granny flat!

Remember, it is fantastic to have family living close by, especially for children and grandparents – but there still needs to be boundaries!

For more on how your family can benefit from a granny flat, contact the team at Perth Granny Flat Specialist now – (08) 9284 7778!

Are you thinking about building a granny flat but don’t know where to start? In this FREE GUIDE you will find great information about whether your property is suitable, how to choose the right builder for you and the steps to a successful building experience! You need to read this!

We get a lot of phone calls from people who are thinking about building a granny flat but are not sure where to start. This prompted us to put together a guide to assist people with what steps are required.

Before you start, sharing your space comes with a lot of compromises. This highlights why careful design and planning can go a long way toward creating two compatible, comfortable dwellings that can coexist peacefully where there was once only one.

Thoughtful construction details inside and out can make a new unit seem like it was always there. New landscaping helps to complete the effect.

The success of a granny flat also depends on whom you share it with, and how. With that in mind we’ve come up with a list of questions which will give you something to think about.

SHARING YOUR SPACE: BUILDING A GRANNY FLAT

This list explores how sociable you are, how much control you need, and how much experience you’ve had living with others.

  1. How many siblings did you grow up with?
  2. How much of last week’s downtime was spent with friends? How much did you spend alone?
  3. How relaxed are you about your material possessions? Do friends have any of your books, tools, cooking equipment, Tupperware? Do you annoy them to get it back regularly, or do you just trust they are good friends who will return things when they are ready?
  4. When you go to a restaurant, do you share what you order or do you keep it all to yourself and savour every bite?
  5. If someone cuts in front of you in traffic or at the supermarket, how do you react?
  6. When was the last time you had a fight with a neighbour and what was it about? In certain cases, these neighbours could be your parents or inlaws – could this cause issues with your partner?
  7. Is your work mostly solitary or social? Tightly focused or multitasked?
  8. Where are you on the “Speak My Mind vs Keep It To Myself” spectrum? Because that can make or break living relationships!
  9. Have you ever shared a house with anyone who wasn’t family of a loved one?
  10. Do you live with someone or alone? How long have you lived that way?

In general, people who have siblings, aren’t super fussy, can multi-task and don’t sweat the small stuff have an easier time sharing their property.

At the end of the day, communication is King. If someone does something that doesn’t sit well with you, talking is important.   Yes it might be your granny flat – but remember, its their home.

And a happy person living in your granny flat – is a good thing for relationships and investments!

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