Your place in the sun: planning retirement accommodation well in advance
When planning retirement, so many people focus on the finances: will there be enough, how much will I need to be comfortable? These are good and important questions, but a key aspect of your retirement resides in something other than money – and that is…will you be happy? It’s a good question. And while you might have enough money organised to secure your life – have you secured a place to stay that will make you happy?
It’s pointless to think of this vital aspect as last on the list when it should be the first. If you want to make your own choice about where in the sun to retire, you have to calculate the costs – firstly with regard to purchase or rental – and then with regard to the levies. Whether you buy or rent, levies can be steep. And then there are choices about a garage, one or two rooms, upstairs or downstairs; and everything contributes to the price.
So, your retirement funding cannot just be about how you will live, but where you will live and what it will cost. And you have to make choices preferably sooner rather than later.
Considerations when making decisions:
Proximity to family and friends: 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, you may find cutting your ties of your old community leaves you lonely and at a loose end. Visits from family and friends may become fewer because the reality is that life gets in the way. So weigh up what you need and what you’re prepared to adjust to.
Access to amenities: 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. Check out proximity of shops, restaurants, parks, social clubs and medical facilities before purchasing a retirement property.
Security: Your retirement property should be a sanctuary where you (and your belongings) feel safe and secure. Close neighbours whom you may call upon is one way to go, but the choice for a retirement village where there is 24/7 security, and maintenance and medical assistance in the form of trained staff is possibly your best bet not only for safety and lock up and go convenience, but also peace of mind.
Services, levies and admin bills: Many retirement villages or flats come with levies for maintenance, gardening and landscaping. While it’s all well and good not to have to worry about these issues, there are very often additions of electricity and water, meals, healthcare, garage or parking facilities. Life Rights present certain restrictions – so make sure you understand the implications before making any final decision.
Will your choice support your preferred lifestyle? If buying into a sectional title development, in particular, you’re going to want to read the code of conduct to check any restrictions. For instance, many places are not pet friendly, or perhaps don’t allow for friends or family to stay over. Check the small print on any communal living residences before signing.
Balance time and practicality when buying
In other words, don’t buy too soon – or give yourself viewing opportunities at various complexes or suitable properties in various areas, so you can make a final choice that may present as more suitable at the right time. There are numerous economic changes and lifestyle adjustments that may take place before that right time comes. You may even continue working until well in your seventies. But good health is a variable factor, and so having a place ready on reserve is a good idea.
It’s not easy to keep tabs on family when thinking of buying. People move and relocate all the time. Choose a place that suits you, and where you can make new friends, and engage in new pastimes. Family and friends will find their own places in the sun. You can’t control that. But if family is an important support system for you, then work with them to find what may work best.
The investment factor of thinking ahead
- There’s a huge value in securing a second property that will not only act as a source of income as a rental, but eventually prove useful as a retirement home. The demand for retirement property continues to increase, with buyers being able to pick from an array of excellent choices.
- Considering the variety of retirement estates and villages in South Africa, this competitive market can promise an even better long-term investment. Higher demand also means that the yearly capital appreciation will be on the rise. Should you decide to sell, your return on investment will most likely be above average.
- The younger you buy, the better your investment will work. You don’t have to move in for years. And it’s there should your parents or other members of your family require accommodation. This can certainly save money for the whole family and prevent the stress of coming up with an urgent solution. And should you decide or need to retire earlier than expected, you can easily do so.
Empfin Solutions – the team that keeps your team happy
We’re an Old Mutual franchise with our primary focus on the three main areas of concern in everybody’s financial planning:
- Your Company Benefits – advising on, and servicing umbrella pension and provident funds.
- Your Personal Financial Planning and Provision – Estate planning, Wealth Creation and Retirement Planning.
- Your Assets – motor and household insurance.
Always striving to be a trusted partner in facilitating financial solutions for organisations and individuals, our dedicated team of fully accredited, experienced professionals have a passion for satisfying customer needs and providing a truly client-centric service.
Find out how you can benefit at: www.empfinsolutions.co.za