new, smaller home. Once your child or children have saved enough to buy their own property, you can then rent out the ADU and boost your retirement fund! In the ideal scenario, once your son or daughter has become financially stable with a secure job, they could well decide to buy the ADU from you and get on the property ladder that way. 2. Children’s divorce – There is also the scenario where, unfortunately, an adult child gets divorced. One of the biggest challenges facing divorced couples is that one or both have to find somewhere else to live. If there are children involved, the mother often becomes the primary caregiver, meaning she will require more space. In a perfect world that would mean continuing to live in the family home, especially as it would then minimize disruption for young children who are faced with an emotionally challenging time. Unfortunately, we do not live in a perfect world. The problem is, life begins to look somewhat unfair when you realise that property values are such that the value of a three-bedroom family home is likely about twice the price of a one-bedroom apartment, which creates problems where the children are concerned. If, financially, the only option available is to sell the family home, then what can be done about finding new homes for both parties and the children? As an adult, returning home to live with your parents is seen as a last resort—having left home, returning tends to create a sense of failure. For the parent who will be the primary caregiver to the children, remaining in the family home may not be possible. They may not have the ability to take over the existing mortgage, even with financial aid from their ex-spouse. Similarly, even for the partner who is not the primary caregiver, providing financial support can make paying a hefty mortgage on a new property for themselves particularly challenging. However, ADUs could be a complete game changer for one if not both parties involved, especially if parents can help by providing space on the grounds of their own home to build an ADU.
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