Retirement and downsizing

Retirement and downsizing

Category Advice

Retirement could pose as a daunting step for most, but deciding where and what you call home during your golden years does not have to be. Many individuals are unsure of whether they should be downsizing, moving to a retirement village or an old age home - but before committing or making any big decisions - it is advised to hit pause and do your research. Thorough planning in advance is advised. This way one can alter the dream or the plan as time passes, and as your retirement needs become clearer.

When starting your research one can ask yourself a few questions, which will lead you in a direction or at least give you an idea of what you will be looking for or what you believe you require once retired. These questions are: What do you think you will need regarding your health and care facilities, and how are you planning to manage your finances and what will your foreseeable financial obligations be? How and where would you like stay? Does this mean downsizing, moving to an Old Age Home or Retirement Village?

A few of these options are discussed below to ensure that you have somewhat of a better understanding of what you can expect and thereby assisting you in your research to finding the perfect option for you and or your loved one.

What is the difference between an Old Age home, a Retirement Village and Downsizing?

 An Old Age Home can present itself in various forms. Lounges and dining rooms are often shared spaces, and some Old Age Homes offer shared accommodation. Medical and frail care facilities are often services that are available here too.

Retirement Villages offer individuals the ability to retain their independence, but at the same time also offer a secure and safe environment. There are usually a combination of apartment blocks and free-standing homes of assorted sizes, with small gardens and garages or carports. These villages often have a variety of activities available which assists individuals in meeting new people and allows them to expand their circle and allows them to partake in something fun. Many also have medical and care facilities available, should that become a requirement later in retirement.

Both Old Age Homes and Retirement Villages have age restrictions, and these restrictions will differ from home to home. There are also waiting lists by many of these institutions and is advised to enquire earlier rather than later.

With regards to retirement villages there are also diverse options of ownership. It too is of utmost importance that one understands these options and how they differ from one another.

• Life Rights

Life Rights simply put means that the owner, only owns the right to reside in the property for the remainder of their life. The ownership of the property belongs to the developer. Life rights can also not be transferred between individuals.

• Sectional Title

The purchaser will own the property and it will be registered as such in the Deeds office. Sectional Titles also attract higher monthly levies compared to full title that need to be paid beyond the payment towards the home.

• Full Title

With Full Title ownership, the individual owns the property, and it will be registered as such by in the deed's office. It is also easier to sell when wanted or required because it is free standing.

Downsizing purely means downscaling in space. One will therefore be cutting down in house space, erf space and cutting down on costs that go towards owning and maintaining a home. It is important to keep in mind that this new space needs to serve you - therefore ensure that the new space can meet all your needs and desires. If you are unsure of how to determine which size will work best, evaluate your daily activities/routine, and prioritise what matters most. Plenty of people prefer this option because they can make decisions regarding their property more freely and therefore are able to retain control and their freedom.

When it comes to considering what your next move will be, one needs to be aware that this is not purely a logistical process but also involves emotional considerations. It encouraged to acknowledge and embrace all the emotional aspects that may arise. Take the time to work through these aspects and pay homage to each equally.

Once you have reached clarity and know which type of home / property you will be searching for, there are a few extra guidelines that could assist you in honing into finding the perfect home. Things to consider would be location, storage, peace of mind, guest appeal, current wants vs future wants, maintenance and any restrictions.

Author: RED Properties