Private Home Loan agreement between Adult Child and Elderly Parent?
This is in 3 parts to explain why the questions of concern that affect both ‘Pension’ and ‘Centrelink Medical Exemption benefits?’
- My situation: I have been on a medical exemption while treating a condition since covid 2023. I receive Newstart,(not disability) as I hope my condition will improve? I have rented the unit I am in since 2020 from my Father as he purchased it from my landlords at the onset of covid when no one knew what the outcome of covid would be for the housing market? At the time it was a relief to feel secure and not feel the stress of moving again. My father at that time was advised by Centrelink that this acquisition would reduce his Liquid assets to be able to receive most of his pension?
- My Elderly Father’s situation.
- My father now in his 80’s and has multiple health issues. He has had his pension reduced each year due to the increase of value of the unit I rent from him over the past 4yrs & now only receives a sum of $8. per fortnight. Whilst he is still able to receive a pharmaceutical allowance, it won’t be long before Centrelink calculate the unit’s value again at the end of this year where he will lose the last of his pension and be reliant totally on his term deposits amounting to 1/2 of the income he was receiving before 2020 when being advised to buy the 2nd property.(he owns his own home)
[It’s not rocket science that his term deposit will dwindle exponentially once his health issues progress and are in higher need of medical attention?
(1st world problem I know, but this is very stressful trying to make responsible decisions knowing that we both have medical conditions, one of which will never be cured?]
- Our benefits & obligations?
I will turn 60yrs next month, but am too old in the eyes of lenders to apply for a loan to buy the house from Dad even if I access my Super for a deposit in November?(I do not have enough Super to buy the home outright).
Dad sees there’s no answer (& resist’s seeking professional financial advice on the matter - Old School) Other than to leave the home I pay rent for now in the estate for when he passes, which is a huge gesture of love and safety, however it stresses me that he foots the financial burden now & is clearly concerned enough to remind me of his situation.
I am not entitled to make practical decisions about the property in matters of maintenance or improvements whilst it is not in my name?
(There was even a mention at one point that if he should get sicker like my Mum did in her last 5yrs of life before she passed away last year, that this property would have to be sold to accommodate the security guarantee of his care facility?)
Which is really scary knowing how hard it was for me to find accommodation for my Elderly mother at the time her health declined in a suitable Aged Care facility even with the full amount of $399,000. Available?
To add that onto my having to sell the home I live in & re-locate in a housing crisis is an anxiety I struggle with? This ’Is not a 1st world problem’ but a very real prospect of being homeless under duress?
Has anyone else had this kind of predicament?
I wondered if it was an idea to pay a deposit to my Father in November for the home? And set up a personal loan between us repaying him weekly repayment’s that would reduce his assets but give him a weekly return thus possibly keeping a bit of his pension and being able to live off of his term deposits?
This is the only way I can see us both not being affected (or penalised further) through the benefits system.
As he is retired he doesn’t pay tax which is another reason he won’t get advice because he can’t claim the cost (I know what your thinking? Yes, it is frustrating to deal with a generation that sees this as a waste of money?)
I hope to have a new career by middle of next year to be fully independent again?
Any advice or confirmation on this idea would be greatly appreciated?
Thank you in advance for a direction to start looking in.(before it’s too late?)
Regards EyesWide00
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