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I'm guessing you're referring to something like this? http://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/NSW/Strathfield/?adid=2010298291 Not sure if these have their own facilities or what the strata/management fees would be like though. Out of 1 and 2, I would go option #1...

Yes to this point No to this point. It would not be viable if they purchased the house and built a granny flat.... funding wise I just could not see it happen - which lender would even consider lending them money? This is merely a suggestion.... YOU buy (not your parents) an investment...

This strategy probably depletes their capital, but may be more comfortable. It also depends on your ability to service the loan... something i know nothing about! This is purely conceptual - its a basic strategy that would need to be modified to suit your and your parents situation. You...