The years leading up to retirement are fraught with all sorts of difficult dilemmas and accommodation is often one of the main headaches.

Various questions often plague those with retirement in the offing. Where should I buy? What should I buy? When should I buy a retirement property?

David Welsh, development consultant at the Schonenberg Retirement Village, says planning in advance for your retirement can not only save you a great deal of stress, it can also provide you with financial security.

“In addition to putting money aside and investing in retirement annuities, you can also invest in your future by purchasing a retirement property ahead of time,” says David Welsh, development consultant at the Schonenberg Retirement Village.

“Buying a retirement property has a number of benefits in addition to merely securing a home for your golden years. Many people who buy these properties rent them out until they themselves are in a position to take occupation. This gives them the choice of the best positions in the estate and allows the development to mature before they move in. Also, the value of these properties appreciates over time, especially once a waiting list builds up, which means a healthy return on their investment”.

Jason Lee, Rawsons Auctions’ legal and corporate advisor and author of Fast forward your retirement through property, says convenience and cost-cutting are the two biggest factors to be taken into account when considering a retirement property.

“Make yourself as nimble as possible by downsizing and buying a lock-up-and-go property that allows you to travel overseas and visit friends and family for months on end.

“In this context, big gardens and extras with high maintenance costs should be avoided.

“The biggest problem with buying retirement properties is that people who own big homes before retirement often struggle with the concept of being retired and still want a lot of space for when the kids come and visit. I think people in their 50s and 60s should rather shed the larger property and buy two smaller ones before they retire. This way they can get a rental stream on the one they’re planning to retire to.”

“Most people these days have two properties before retirement, their primary one and one at the coast. This is quite evident in Cape Town where people have their residence in Cape Town and a second property in a place like Langebaan or Hermanus. However, this is often too much to maintain and they should think about selling or letting one of them.”

John Loos, property economist at FNB, says those looking to retire need to keep two things in mind. “As one gets older, say, past 50, it may get increasingly difficult to secure a 20-year loan from a bank.

“Second, repaying debt up until retirement can hamper one’s ability to save enough for retirement. Often the 50s are a good time to get on with saving, with many couples’ children moving off their ‘payroll’ and debt obligations being wound up. Repaying loans until late in one’s life can sometimes hamper this ability.”

Another factor with retirement property, says Welsh, is safety. “These days the news is full of stories about how older people are seen as soft targets for criminals, and with South Africa’s soaring crime rates, security is an unquestionable necessity. People need to feel safe in their own homes and the environment they live in,” says Welsh.

“Whether you are planning to retire in your current home, a new home or in a retirement complex it is vital that you have adequate measures in place to keep yourself safe. A number of retirement communities offer security systems, but ideally they should provide things like surveillance cameras, electric fencing, guards and emergency response systems to ensure the safety of their residents.

He says as people get older they become more susceptible to illnesses such as arthritis, strokes, osteoporosis and Alzheimer’s disease. Also, the risk of bone-breaking falls increases with age. “I would suggest that in order to prepare for these eventualities, retirees should look into retirement properties that are equipped with medical and frail care facilities that can care for them when they cannot.”

He says ultimately, as you shop around for your new home, it is advisable to look for properties that are in close proximity to places such as beaches, shopping centres or walking paths that interlink with other estates allowing you to mingle with a wide spectrum of people living in and around your property. “A retirement community in such a set-up creates great opportunities for retirees to form friendships with other, like-minded people and allows for a cross-pollination of different age groups as well.”

Welsh says retirement should be a time where you can enjoy the rewards of a lifetime of hard work and if you are adequately prepared for the realities that you could face, you’ll be able to enjoy it all the more. “This is the beginning of a whole new chapter in your life. I would suggest choosing to retire in a location that not only gives you the peace of mind of knowing that all your needs will be taken care of, but also where you can enjoy and partake in your surroundings.” – Eugene Brink

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