Elderly Aussies giving up family home for grandkids amid housing crisis

A wave of elderly Aussies are moving into granny flats and forfeiting their homes so that their kids and grandkids have somewhere to live amid the nation's devastating housing crisis.

In Victoria in particular, where the state prepares for its biggest overhaul to granny flat regulations in decades, a number of older Australians have said they've moved into the smaller dwellings so that their offspring know what its like to "grow up in a home".

Under new legislation set to come into effect by the end of the year, granny flats in Victoria will now be legally eligible to be rented out, in a move that's aimed at combating dire levels of housing availability.

In South Australia, the government is also in the process of implementing a similar plan — though in both states it was already legal to allow family members to rent out the flats, which had long been a popular setup for many around the country.

Retirees forfeiting their homes for their kids

Prior to the announcements, housing providers and real estate agents revealed that many elderly Aussies had already selflessly moved from their homes so that their grandchildren or children could live there, the Herald Sun reported.

The growing trend is one Victorian grandmother Racheal Robinson is onboard with, having sold her long-term home and used the funds to help her son, Scott, his wife, and her granddaughter Renee, to buy a property on the Mornington Peninsula.

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The soon-to-be 80-year-old will then move into a granny flat which will be built out the back of the property.

"We have been renting for the last 10 years and the only way to get back on the ladder was to combine forces," Mr Robinson told the Herald Sun. "The easiest way to do that was to buy a house where we could have a granny flat and share the costs of living. That's what we've had to do just to get on to the ladder, to get the Australian dream."

He added that he was also happy that he’d be able to provide more support for his mum as she grows older.

Victoria's new granny flat rules

Under the Victorian Housing Statement's new revisions, a small second residence on the one property under 60 square metres in size will not require a town planning permit, so long as the parent property is more than 300sqm in size.

The Planning Department announced that these dwellings will now be able to be rented out — the first time such an idea has been allowed in the state. A building permit will still be required however, and some planning controls including overlays may require a more detailed process.

Expert previously encourages elderly Aussies to sell up

Earlier this year one expert claimed that Australia's retirees living in properties with more bedrooms than they need are contributing to the nation's crippling housing crisis, and said that seniors should downsize to free up more space for others in need.

Economist Michael Blythe said the solution isn't easy, but tough decisions must soon be made before the situation deteriorates further. "It is complicated and we need to make it easier," he said.

"We talk about a housing shortage in Australia, but what economists will tell you is we've got an excess of bedrooms, just not in the right place ... maybe instead of first home buyers, we should be thinking about last home buyers."

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