build an ADU on your current property and let your son or daughter live there while they save up enough money for a place of their own. You could alternatively downsize your own property and build an ADU on the grounds. Once your child saves enough to buy their own property, you can let out the ADU and boost your retirement fund. In the ideal scenario, once your children 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. If they do save up enough to buy their own property elsewhere, you will be able to boost your income by letting out the ADU and earning a return on the capital you invested. Children’s divorce – There is the scenario where, unfortunately, one of your children 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, in the majority of situations, one parent becomes the primary caregiver and requires more living space. In a perfect world, that would mean continuing to live in the family home, especially as it would minimize disruption for young children at 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 the only feasible option is to sell the family home, then what can be done about finding new homes for both parties and the children? After all, as an adult, returning home to live with your parents may be seen as a last resort—as if somehow, having left home, returning carries 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 if they lack the ability to take over the existing mortgage, even with financial aid from their ex-partner. 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 game changer
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