Why Choose a HOW – Nanohome over a traditional granny flatMarch 14, 2017
Barb and Dave are no longer eligible for $12,480 per year in Aged Pension Payments as their assets exceed new Asset Test Thresholds introduced on 1 January 2017.*
“Our pension was suddenly cut by $480 per fortnight – so we were looking for something to replace that lost income,” Barb explains.
“We’d thought about selling our house and downsizing, but we love it here and we don’t want to move.”
Barb and Dave considered shifting their savings into a high yield managed share fund, but that option didn’t really appeal, as by the time they accounted for CPI, they weren’t really achieving a good return. Their financial advisor suggested an approach that saw them harnessing the equity in their home to provide cash flow and also add value to the property: a granny flat investment.
“Our block is quite large and in a great location so building an ‘investment property’ in our backyard was a strategy that ticked all the boxes,” Dave says.
“We had plenty of equity in our home so getting finance was easy, even at our age! We could choose whether or not to pay down the principal, and the rent from our tenants more than replaces our old age pension payment. At tax time the deductions we can claim put us in an even better financial position.”
They selected a 60m2 two-bedroom modular granny flat that was installed in less than a week and is now rented to a young professional couple. In future they can continue as landlords, use the granny flat to accommodate friends and family, or even move into it if they decide to downsize after all.
“We’re thrilled to have so many options and we’ve definitely achieved our goal of replacing our lost pension income,” Barb says. “We’ve worked hard all our lives and now our money is working hard for us. A granny flat investment was the perfect solution.”
If you’d like to explore how a similar investment might suit your situation, let us show you HOW we can help. Our project managers and finance specialists combine forces to lead you through the stress-free process of evaluating, planning and installing a state-of-the-art granny flat investment on your property. Call us for an obligation free discussion on (02) 8004 2222.
* Assets tested include superannuation, bank deposits, shares and investment properties, but NOT the family home. Eligibility for the Aged Pension Payment is based on the following asset limits:
For background information see our blog “Centrelink Pension – Reduced or Gone?”
For another solution see our blog “A Financially Savvy Way to Retire”
or to register your interest to attend a free information evening or have a personalised appointment with one of our specialists if you’d prefer here
The blog is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should seek the advice of a professional advisor to consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.