Selling to whanau - Pari and Tatiana

Pari and Tatiana had little opportunity to save for retirement. They'd had a large family and supported several children through university. When they retired, their only income was New Zealand Super, though they did own a unit worth about $108,000.

Five years into their retirement, their son said he'd like to support them by gradually buying their home.

He proposed giving Pari and Tatiana $450 each month, for the rest of their lives. On their death, their home would be sold and he'd get his money back. Any money left over would be split evenly between the children.

The son made it clear that he didn't expect to receive any interest on the money he'd given his parents - he considered this to be a way of helping them, rather than a financial investment. He was also prepared to accept the risk that over the years he might pay Pari and Tatiana more than the house was worth. His parents were free to sell their current home and purchase another one.

He viewed the arrangement as a way of returning the favour they'd done him by helping with his education. After discussing the plan with the rest of the family, Pari and Tatiana got a lawyer to draw up a legal agreement formalising the arrangement as a loan, and to include it in their will. They thought it was important to avoid any arguments between the children after they were gone.

Being able to access some of the money tied up in the house made a difference to their lifestyle. Most importantly, they could now afford to visit family in Australia.