South Africans are living longer and retirees are maintaining their active lifestyles, forcing developers to meet these changed demands.
Many modern retirement villages and new developments are doing just that, but picking the right home can be a challenge, especially as retirees have so many factors to consider.
Whether you picture yourself living your golden years in a vibrant retirement community, jet-setting from a lock-and-go home base, or settling in a quiet cottage by the sea, choosing the right retirement property isn’t a task to be taken lightly, says David Jacobs, Gauteng regional sales manager for the Rawson Property Group.
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To assist retirees in making the right decision, he says these are the most important questions to ask:
1. Will I be close to friends and family?
Most retirement-aged people will have spent a number of years in one town or neighbourhood, setting down roots, building a friend group and being with family. While retiring to a quaint cottage in a seaside town may sound idyllic, Jacobs cautions people not to take their community ties for granted.
For while it is easy to believe that adult children and friends will come visit, the reality is that life often gets in the way.
“The last thing you want to do is end up feeling isolated and alone in your retirement. If you’re not joining a community where you can easily forge new ties, I’d definitely suggest staying within comfortable reach of the people you love.”
2. Will I have easy access to the amenities I need?
Realistically, most retirees reach an age where they’re not comfortable driving long distances. That makes it important to find a property close to the amenities you may need. Jacobs highly recommends retirement buyers check out the shops, restaurants, parks, social clubs and medical facilities in a neighbourhood before deciding to move in.
3. Will I be safe?
It’s a sad fact that we become more vulnerable to crime as we get older. Your retirement property should be a sanctuary where you (and your belongings) feel safe and secure.
“Security is one of the biggest draw cards for community living in retirement. Both retirement-specific and ordinary sectional title developments offer far more sophisticated security than your average freehold property.
“It’s also comforting to have neighbours nearby who will notice if anything happens to you or your property. Freehold homes may offer more space and privacy, but can also be more isolating,” he says.
4. How much maintenance will I need to do?
Getting older inevitably makes basic home maintenance like mowing lawns and clearing gutters a lot more difficult to DIY. Unless you’re great at organising contractors, Jacobs suggests opting for a low-maintenance property that won’t take too much effort to keep in shape.
“This is another draw card for sectional title properties where a significant portion of maintenance is handled by the body corporate. Of course, if you’re an avid gardener, you’re going to want to opt for a townhouse or ground floor apartment rather than the lowest maintenance option of a lock-and-go apartment.”
5. What costs will I need to budget for?
All properties come with monthly bills. Freehold properties have rates, water, electricity and sanitation services, and sectional title properties add levies to that list as well.
“Retirement communities often have much higher levies to pay for value-adding services like social clubs, healthcare and communal dining, for example. You’ll need to weigh up the value these might add to your life to figure out if they’re worthwhile for you.”
Jacobs also cautions buyers to make certain they understand the full implication of any life rights conditions that may apply to retirement properties.
“These can make a big difference to your estate, which may or may not factor into your decision.”
6. Are there any restrictions that may impact my freedom?
Your retirement should be a time to enjoy life’s pleasures, not a time to be limited in what you can and can’t do.
“If you’re buying into a sectional title development, in particular, you’re going to want to read the code of conduct to check any restrictions. A lot of places may not be pet friendly, for instance, which would be a deal-breaker for fur parents. Ultimately, your chosen property needs to support your ideal lifestyle as well as any activities – and cohabitants – that will bring you joy,” he says.
Don’t buy too early
A fully-paid-for home is a great aim if you’re planning for a financially secure retirement, but you should not actually buy your ‘dream retirement cottage’ too far in advance, says Gerhard Kotzé, managing director of the RealNet national estate agency group
While planning to retire to a holiday home that you bought years ago might seem like a great idea, a lot can change before that day arrives.
“For a start, there have been huge economic upheavals and lifestyle changes globally over the past few years that have really altered the traditional idea of retirement, and many people are now opting to continue working well into their 60s and even 70s.
“Others who are still in good health are taking the opportunity after retirement from corporate life to start new businesses, launch new careers, and undertake new tertiary level studies, and a move to an ‘active lifestyle’ retirement village close to their existing home may actually be a much better move for them than relocation to a coastal or country holiday home.”
On the other hand, Kotzé says, you could experience unexpected health problems as you get older, and then your best option might be to buy a cottage or apartment in a continuing care retirement village (CCRV) where you will have peace of mind about always being able to access any medical assistance you may require.”
And then there’s the question of possibly leaving friends and family.
“We have seen many upcountry residents who planned to retire at the coast because they always enjoyed their family holidays there change their minds when it hits home that their children, grandchildren and long-time friends won’t be going with them, so they may only get to see them ones once or twice a year, at best.
“Modern technology can of course do much to help them stay in touch, but it’s difficult to make a new circle of friends later in life, and very hard to leave a family support network.”
Apart from these personal issues, he says, a holiday home that seems like a serene and pleasant retirement option now might not stay that way, especially if it’s located in an area that suddenly becomes a hugely trendy tourist destination teeming with strangers every holiday season.
“In addition, buying too early and too far away from your current home might mean you also have to deal with the problems of being an absentee landlord for several years. Finding the right tenant and ensuring that the property is properly maintained will be an ongoing concern, even if you have a reliable and responsible letting agent.”
His advice to those considering buying a second property now as part of their retirement planning is to invest in a rental property close to their current home, where they can monitor property values and react quickly to any changes they don’t like.
"Then when you are ready to retire – or at least to sell the family home and downscale – you will have the choice of either retiring to this second property, or keeping it as an investment, or selling it as well as your primary residence and then buying the retirement home that is exactly right for your needs and preferences at that time."
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