Help! Nz parents sold house and now need to decide what to do next

[nickir70]

Hi all,  my parents have a worrying financial position. They "retired" 7 years ago with 300k in the bank and mortgage free. They only have 100k left.  My dad now has Alzheimer's and they needed to sell their lifestyle block. The got 375k. They live in a small town-,kawerau- which has limited dementia care. They can buy in kawerau - nice 4 bed house for 140k.   Do you think they should stay in this town or move to Hamilton closer to family who can help. They could get a 2  bed in Hamilton for around 270k.   

Any advice gratefully received. 

[soccerluvof4]

Sorry to hear about your Dad. Thats a tough one. Not knowing the distance between the cities, how old your parents are etc... I would just say this. They might need to be closer to family BUT are there any other options. Goverment assistance? can they rent cheaper than cost of a house would be? Alot more questions would need to be answered. What are there medical expenses and so on.

[Kaminoge]

Sorry about your news. That's tough.

Personally I'd say they move closer to family. Your mother will probably need the support. And that goes doubly if there are better medical facilities in Hamilton.

Given that they've apparently burned through 200k in 7 years I think they should buy something (rather than rent) so that they can't spend the money and so your mum as assured of a roof over her head. Is there any reason they'd want a 4 bed rather than a 2 bed? A 2 bed will be cheaper to maintain etc. Also do you have any idea where the 200k went? Perhaps you could offer to step in and help your mum with managing her finances as part of helping take some of the stress off her.

[nickir70]

Thanks both for your replies. They spent the money on: replacing their car and kitchen. Visiting my sister in the uk for the birth of her daughter, going to Aussie, going on two cruises.... Yup they lived it up. But with dads condition now there will b no more travel. Mum has realised she needs to seriously sort their finances. Dad is 75 and mum is 69.

I've worked out they get around. 28k in super and the would need to supplement that by 5k a year from their nest egg which is sitting in rani bank earning 4% before tax. The closer to family thing may end up being a cost and inconvenience the family will have to bear!