Due to the current increasing cost of living and the housing crisis in Victoria, more adult children are moving back in with their parents to save money, find their financial footing or have somewhere to live.
“A Finder survey of 1,073 respondents revealed one in 10 (10 per cent) Australians – equivalent to 662,000 households – have either moved back home with their parents or had an adult child return home in the past year,” the research reads.
The research can be found at finder.com.au/news/boomerang-generation-2023
A shared living arrangement can have great benefits for all involved, but it can also create some challenges and put a strain on the relationship.
When considering the pros and cons of this new arrangement, it is important to try and stay objective before you enter into any new agreement.
While it may seem feasible for your family at first, this arrangement does not always work out the way it should.
Planning ahead can help to avoid breakdown in the arrangement or relationships.
Here are a few practical things to consider before agreeing to share your home with your adult children:
Relationships and wellbeing – this includes setting expectations of any arrangements including boundaries, for example who will be providing care for young children who might also be moving in, how household chores will be shared, what if the property needs to be sold.
Be prepared to have difficult conversations – it is easier to get this out of the way beforehand than to unpack an arrangement that might have gone wrong.
It is also extremely helpful to think about how you will manage any unanticipated disputes that might arise.
Financial considerations – this could include anything from household expenses, how to protect your own finances, whether there is any financial contribution in exchange for the accommodation and/or care and potential impact on Centrelink entitlements).
Legal considerations – this could include documenting the terms of your living arrangement in writing and getting legal advice about any money being exchanged as part of the arrangement.
It is important to remember that shared living and care arrangements may not always be in everyone’s best interests, especially if someone has more power in the relationship than others.
It could also increase the risk of someone misusing their power or being abusive.
Before agreeing for your adult children to move back into your home, it is very important to get your own independent advice about your individual situation.
This includes legal advice.
This resource by Seniors Rights Victoria – ‘Care For Your Assets’ can be a good place to start: seniorsrights.org.au/resources/info-sheets/care-for-your-assets/
If you have any concerns about these types of arrangements for yourself or someone else, please call Eastern Community Legal Centre on 1300 32 52 00 (1300 ECLC 00).
You can also email ECLC at eclc@eclc.org.au or use the online application form: eclc.org.au/help to arrange for an appointment.
If you are interested in a free information session to explore this topic further for your group or community, please contact Anita Koochew on 1300 32 52 00.
