Granny Flat

[MarkR01]

Hi,
I have a situation I?m hoping that I can get some advice on.

My father in law is getting on & has had a couple of unplanned hospital admissions in the last two years. We?ve discussed building a granny flat in the back yard and I was after advice on possible strategies for him

His situation:
PPOR freehold $550-600k
No other assets, only income is the pension

I was wondering if there?s a way we can put him in a granny flat out the back of our PPOR (700 sq metre property in Glen Eira council ? Melbourne) & still manage to provide him an income from his PPOR ? Unfortunately we can?t afford to build him a granny flat so he?ll need to pay for it.

Any advice/experience would be appreciated.

Thanks
Mark

 

[ok180]

Get a line of credit against the PPOR. Will probably require you to gaurantor it as he has no income unless they can count the potential rent as income before the fact. Use the money you can redraw from the PPOR to build the granny flat.