The holiday season at the end of the year is when many people have the time to make life-changing decisions – such as whether or not to buy a new home or move to a retirement village.
The housing options for buyers considering retirement have come a long way from traditional old age homes or moving in with the children. The focus now is on security and quality of life, and retired people can enjoy a comfortable retirement in an attractive setting with essential medical care and leisure activities close at hand.
The choice of location will depend on your personal preferences. For instance, you may want to remain close to friends and family or move to a coastal or rural town you have previously enjoyed visiting.
Traditionally, retirement buyers tend to look for quieter locations when they are ready to slow down. However, if you are accustomed to city living close to friends and family, be aware that you may find country living boring rather than relaxing.
Before you make the move, you need to be reasonably sure that your new home and surroundings will meet your expectations.
Purpose-built
There are many advantages to investing in a purpose-built retirement complex or village - especially as you get older and require more care and security. Living in a community of individuals of a similar age, with social and leisure amenities, good security and medical and frail care for your later years can add quality to your lifestyle.
Offerings vary enormously from one retirement village to the next – from freestanding units to frail care and assisted living complexes and various recreational amenities such as restaurants, clubhouses and sports facilities. Prices vary depending on the location and type of facilities, but there are some more affordable options, particularly in outlying areas.
The main retirement home ownership types are:
- Freehold houses with individual titles.
- Sectional title units such as apartments and townhouses.
- Life right units, which can be freestanding homes, apartments or townhouses.
Each type has its own rules and regulations and is governed by various legislation. Additional monthly costs for services, levies and other expenses may also apply, so you need to consider these when making your decision.
Life right
For many years now, the most popular type of retirement village in South Africa has been the life right option, for many reasons. First and foremost is the fact that you – and your spouse or partner - will have a home for the rest of your life, even if you can no longer afford the monthly levies.
Another big advantage is that all maintenance, repairs and garden upkeep are the developer’s responsibility. Although you will not hold the title deeds to the property, the beneficiaries of your estate will still inherit a portion of the property’s original purchase price.
John Chapman, director of Rabie Property Developers, says that many elderly people in sectional title developments mistakenly believe they are taking care of their fixed assets while they are actually running them into the ground. This is usually because they fear they may outlive their pensions, so they cut back on repairs and maintenance.
“In the life right model, the developer manages the amenities to high standards. The clubhouse and other facilities largely decide the value the developer achieves from the sale of the remaining assets, so they must always be immaculate. Also, when a resident dies or moves out for any reason, the home must be pristine for prospective new owners,” says Chapman.
“There is also greater certainty about levies and no surprise special levies for owners to be concerned about. You can rest assured that you will always be living in a first-class complex without increasing levies.”
Research
Although retirement buyers are generally more concerned with lifestyle than with investment returns, it is still important to consider all your options and get professional guidance if needed.
Before making a final decision, you need to thoroughly research the type of retirement village you are considering as well as the associated costs.
Writer : Sarah-Jane Meyer