parent accommodation + investment in Melbs

Discussion in 'What to buy' started by noviceInvestor1, 2nd Apr, 2022.

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  1. noviceInvestor1

    noviceInvestor1 Well-Known Member

    Joined:
    22nd Oct, 2018
    Posts:
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    Location:
    NSW
    I need to provide a small sized accommodation for my parents who live in Melbourne- basic no frills 1 bedder (kinda like a granny flat or DPU). I don’t intend to seek any rent from them.

    My parents don’t work, are on govt pension and apart from that completely dependent on me financially. However I live in NSW.

    I am happy to buy a property in Melbourne (up to say 1 to 1.2 mil) but I’d also like to get some rent from this. I am happy to build a granny flat or DPU on this property. However GF rules in VIC are a nightmare and I don’t know if I’ll be allowed to rent the main house whilst my parents live in the DPU in the backyard.

    In other words this property will be an IP for me but also serve a dual purpose of accommodating my parents.

    How can I kill these 2 birds in one go?

    My only expectation from an IP point of view is that the property will earn me some reasonable rent, and should have some appreciation in the long term (say over the next 20 years) - so pretty low/generic expectations.

    Please suggest what sort of property might fit this requirement! Preferably around south east Melbourne or failing that anywhere in Melbourne metropolitan area.
     
    noviceInvestor1, 2nd Apr, 2022
    #1
  2. thatbum

    thatbum Well-Known Member

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    Perth, WA
    Why though? Because from what I can tell, those two goals are somewhat at cross purposes.
     
    thatbum, 2nd Apr, 2022
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    In VIC I think you cannot rent out granny flats separately to the house - but I am no expert
     
    Terry_w, 2nd Apr, 2022
    #3
  4. The Y-man

    The Y-man Moderator Staff Member

    Joined:
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    Location:
    Melbourne
    Buy an IP, collect the rent, and use that to pay rent on a place for the parents.

    The Y-man
     
    The Y-man, 2nd Apr, 2022
    #4
    Marg4000 and PurpleTurtle like this.
  5. Trainee

    Trainee Well-Known Member

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    One option is just help them out financially, for rent or whatever, if needed?
     
    Trainee, 2nd Apr, 2022
    #5
    PurpleTurtle likes this.
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