Second Level addition with separate access

Are you able to buy an investment property else where and rent where you want to live, this can be the better financial decision sometimes if where you want to live is expensive to buy

 

Yes we have quite a good relationship, I would definitely prefer to live in my own place but its more that its cheaper rent, I have a backyard. I just don't want to be stuck in a unit with 2 children as I cannot afford to buy a unit or house.

 

Ironic that Mother would rather not live in the granny flat but have her daughter, husband and child live in it.
If the extension was even an option, how would you fund it? Who would pay for it? Your mother owns the house so she would have to be involved in any lending against the property. Have you spoken to a broker about this at all?
P.s. renting is certainly an option and not a bad one, just because you're paying off someone else's mortgage is not a reason to not rent IMO.

 

I would be getting a loan to fund it or my mother will add on to her mortgage and I pay her. I pay her rent now and have been doing so for the last 4 years and we have not had any issues. I do understand it is her property until it is passed down to me and im fine with that. I suffer quite abit of anxiety and the backyard really is a god send for me. I couldn't imagine having to pay $500+ per week (double what I am paying now) to live in a unit that I will not be happy in. but I guess I won't have an option if any of our plans can't work out.

 

Interesting how several posters seem to think that Amy’s mother should move into the very small granny flat! Few posters seem to care what her mother thinks about it!

It’s her house, why should she have to live in a tiny studio just because she is an older person?

 

Hang on a minute!

This house belongs to mum, why should she move from her home into a poky little granny flat just because it is more convenient for a daughter? And from the sounds of it, it is not really a flat, just a room with a basic kitchen?

I would be horrified if any of my kids wanted to do this to me.

Why not get your own place? Be independent?

And, since it is mum’s house, you will have difficulty raising finance to do any extensions (f allowed). Unless you expect mum to finance it - if she can?

 

Have you & your mother spoken to a broker to see what your borrowing options you have? Hard to know what you can do without knowing the answer to this key question, so that would be the first step in my opinion.

 

Got nothing to do with age, rather practicality and would be the first logical question to ask, OP did say that was the original plan. No one is saying she must agree to it.

 

Thank you everyone for your advice.
My mother and I are just looking to explore options on what we can do as we have never done any building and have no knowledge on where to even start.
So far I have one man from a building company quote me $2500-3000 per m2 (area to be done is approx 130m2) so around $320000 (this includes flooring, lighting and bathroom) then on top I will need to pay $20000+ for a draftsman and structural engineer, I will also need to pay for scaffolding and demolition. (puts the price to around $450000) im not sure if there are other costs or people I need to involve.

 

Thank you @wylie, really appreciate your help

 

And knocking down and rebuilding may not cost much more than a second storey extension (well, in Vic anyway. Not so sure in terms of where you live).

 

Personally, I'd be moving out.

 

As others have said, it's practicality, 1 person in 3bdrms with 4 people in 1bdrm (30m2)...

If that isn't palatable, then just about the only option for OP is to move out.

To be able to secure a loan to renovate, OP will need to be on the title which could trigger stamp duty also...

 

@Amy Lastro wonder if you read this

 

The goal would be to have a bigger family home. I have lived with my mother most of my life. I have been paying her rent the past 4 years and we have not had any issues. I understand the home is under her name but one day it will be mine. I don't expect her to pay for an extension that I will be living in.
If I wanted to rent then I would be paying atleast double what I am paying now just for a unit. It has nothing to do with being close to her, I am just trying to make a better future especially for my kids. I won't be able to afford a complete knock down and rebuild and my mother does not want to pay any extra than what she is currently paying on her mortgage. we were just looking into what options we may have.