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Seniors housing options

Discussion in 'General Investing Discussion' started by chocfudge, 29th Nov, 2010.

  1. chocfudge

    chocfudge New Member

    Joined:
    29th Nov, 2010
    Posts:
    1
    Location:
    Victoria
    I would greatly appreciate any assistance with my Mother's housing situation. She recently sold her home ($240,000) has no super, $10,000 bank and single pension income. Further income of $600 per month ($7200) is provided by other family to us so I pay the tax (maybe need to rethink this as my work / income has increased after 1 year at home & will increase further in Jan 11) She is considering options as follows....
    Option 1Retirement Village $241,000 for 49 yr lease. No stamp duty. Monthly service fee $308 Capital gain on home would be hers. DMF 3% per year up to 10 yrs. Fees are high but then it is about lifestyle as fees are deducted after passing on. Future transfer to nursing home (if ever required) would also impact $ left at passing. With this option she is concerned about her financial loss and reduced amount to will to children (2)
    Option 2: purchase unit in town $240 - $295,000, with our assistance, her portion no stamp duty ($240,000)
    Option: build unit with us - say 50/50 which would mean we each contribute $150,000. We have equity in our home say $450,000, minimal super and no investment property. My husband's tax last yr was TOO high, inc $100K my work is new P/T, sal sacrificing and low tax at this point. My tax will increase to higher tax in new staff arrangements Jan 2011 - need to consider investment opps.
    If we purchase or built together would we be able to charge parent rent and then she claim rent assistance from Centrelink? Grateful for any suggestions. Many thx:)