MAKING INFORMED HOUSING DECISIONS

1. MAKING INFORMED HOUSING DECISIONS COTA New South Wales

2. What is the Home Options Information Service? • This service is an initiative offered by COTA NSW • It offers information about the range of available housing options and how they suit the needs of different individuals as they age • The service provides general, not legal advice • It assists people to make their own informed housing decisions Home Options Information Service 9286 3860 COTA New South Wales

3. Why do we need a Home Options Information Service? COTA NSW has undertaken extensive consumer research that shows more and more people are concerned about which housing option will be best for them as they age. According to the Australian Institute of Health and Welfare secure, affordable housing is a key factor determining people’s overall ability to age well. From talking to consumers we’ve found that while older people are aware that there are a wide range of housing options, they don’t have the resources to assess which options will best suit their needs as they age. Home Options Information Service 9286 3860 COTA New South Wales

4. Why do we need a Home Options Information Service? Sydney is now the world’s third most expensive city. This has inflated property prices across the state and makes choosing housing options in NSW even more difficult. While the majority of Australian retirees have paid off their mortgages by retirement, they will still need to assess the long-term suitability of their housing. And for people who have not been in a position to own their own home, they face additional challenges in navigating the private rental market in the post-retirement period. Home Options Information Service 9286 3860 COTA New South Wales

5. Making Informed Housing Decisions This service aims to help people: • Be aware of the different housing options available to them • Locate resources available to help them make housing decisions • Analyse their needs relative to the merits of each housing option Home Options Information Service 9286 3860 COTA New South Wales

6. Some questions to ask Why am I considering a housing change? Can I improve my current home with assistance or modifications? Home Options Information Service 9286 3860 COTA New South Wales

7. Where? Am I moving to be closer to family and friends? Will all the facilities I require for health and recreation be available? Home Options Information Service 9286 3860 COTA New South Wales

8. How and Now? Obtained advice? How to finance it? Is now a good time to sell? Future implications? Have you discussed the decision with your family and trusted friends? Received legal and financial advice? Home Options Information Service 9286 3860 COTA New South Wales

9. Future needs? If accessing equity, have you provided for future needs? What about upgrades, moves, increased care? Home Options Information Service 9286 3860 COTA New South Wales

10. Strategies for Seniors • Stay • Downsize to Smaller Residence • Retirement Villages • Residential Parks • Strata Title • Renting • Granny Flats • Family Agreements • Residential Aged Care • Reverse Mortgage There are many different housing options available to suit different needs and preferences: Home Options Information Service 9286 3860 COTA New South Wales

11. Stay Possible strategies: Home modifications Assistance (care, discounts) Release equity (refinance or subdivide) Take in a boarder or a lodger Share with family/others Home Options Information Service 9286 3860 COTA New South Wales

12. Services that can help you to stay at home Independent Living Centre Technology Assisting Disability Private Community Care Providers Commonwealth Home Support Services Home Care Packages Home Options Information Service 9286 3860 COTA New South Wales

13. Downsize to smaller residence Possible strategies: Consult Seniors Clubs Moving checklist Long-term considerations Age friendly homes checklist Financial + Legal Advice Home Options Information Service 9286 3860 COTA New South Wales

14. Retirement Villages 55 +, Retired and spouse/partner Lease, rent or buy (strata title) Home Options Information Service 9286 3860 COTA New South Wales

15. Considerations for Retirement Villages • Entry, ongoing, exit fees • Deferred Management Fees • Equity gains • Release of premium (agent + ongoing) • Age spread • Facilities, ask the neighbours • Your rights of tenure, village rules • Partner rights • Rights of carers • Availability of aged care • Retirement Villages Act Home Options Information Service 9286 3860 COTA New South Wales

16. Residential Parks Possible strategies: Buy or rent structure Rent land Commonwealth Rent Assistance Home Options Information Service 9286 3860 COTA New South Wales

17. Considerations for Residential Parks • Residential Parks Act • What if sold, insolvent, redeveloped • Costs of moving structure • Depreciation • Park rules • Sub-letting • Ageing in place • Neighbourhood if mixed use Home Options Information Service 9286 3860 COTA New South Wales

18. Strata Title Common and individual ownership Includes responsibilities (strata company, by-laws, duties, levies, voting) Home Options Information Service 9286 3860 COTA New South Wales

19. Considerations • Strata Titles Act • Sinking fund • Shared facilities • Rented or owner/occupied? • Shared or private walls • Disputes/maintenance procedures Home Options Information Service 9286 3860 COTA New South Wales

20. Renting Residential Tenancies Act Rent in advance [two weeks] Security bond [four weeks] Pet bond [dog or a cat] Agent fees Home Options Information Service 9286 3860 COTA New South Wales

21. Granny Flats/Ancilliary Accommodation Water + Council approval Registered builder (or owner builder) Free standing or extension Check with Centrelink Get family agreements in writing Home Options Information Service 9286 3860 COTA New South Wales

22. Family Agreements Possible options: Transferring house to children Building granny flat on other property Co-purchase to share Gifting/loaning money Using title for financial guarantees Home Options Information Service 9286 3860 COTA New South Wales

23. Things to consider before making a family agreement • Future stability (i.e. break-ups) • Change in circumstances/location • Risk of personal pressure/elder abuse • Always seek legal and financial advice • Talk to Centrelink/ATO • Get all agreements in writing! Home Options Information Service 9286 3860 COTA New South Wales

24. Residential Aged Care • Low Care + High Care options • ACAT Assessment to determine necessity • Fees: Accommodation charge + daily fee, extras charge • Residential Respite Care More information: • Aged and Community Care Information Home Options Information Service 9286 3860 COTA New South Wales

25. Reverse Mortgage/Accessing Equity Can use equity to secure loan 10 – 45% of home value available No repayments until you sell, move out, default, or pass away Instalments, lump sum, line of credit Home Options Information Service 9286 3860 COTA New South Wales

26. Things to consider Debt level as interest compounds Pension/benefits eligibility Default clauses No Negative Equity Guarantee SEQUAL/EDR membership Pension Loans Scheme Seek financial and legal advice Seek Centrelink advice Home Options Information Service 9286 3860 COTA New South Wales

27. Where to get help LEGAL ADVICE Legal Aid Law Society FINANCIAL INFORMATION Centrelink FIS Home Options Information Service 9286 3860 COTA New South Wales

28. Where to get help RIGHTS AND ADVOCACY Seniors Rights Service Older People’s Legal Service HOUSING ADVICE Home Options Information Service Home Options Information Service Home Options Information Service 9286 3860 COTA New South Wales