Why Buy and Lose Half Your Cash?
Recent evidence-based research by the BBC has identified that retirement property purchase may not be the investment that general housing could be and has been.
“Around half of new build retirement homes sold during a 10-year period were later re-sold at a loss”
A 2017 BBC article revealed compelling evidence that an exceptionally high number of retirement properties are reselling at a lower price. The research by the Elderly Accommodation Counsel (EAC) charity stated:
“…the BBC found falls in value could be more than 50%; it looked at thousands of Land Registry records for resale of homes built between 1998 and 2012.”
With such a drastic decline in resale value, it is no wonder that many are searching for other options for their retirement. Instead of finding clarity and solution, many are only offered small print and inflexibility when it comes to property purchases.
In contrast, the rental model means there is no need to tie up your money in another purchase and there is no need to sell your existing property. It allows you greater flexibility and freedom of choice to ensure you find exactly the right solution.
The research evidence isn’t limited to older properties; behind the new exteriors and freshly painted walls, the new builds are similarly affected. The article found that:
“New build properties sold between 2005 and 2007, and then resold between 2012 and 2014, more than 80% fell in value, with an average loss for these properties of 25%”
At The Hawthorns, we ensure that there are no extra service costs, maintenance charges and importantly no exit fees. You can even move in straight away, or use our one-month trial offer (Try Before You Rent), giving you full flexibility around your personal preferences. If you wish to change apartments or downsize, there are no agent’s sales fees, survey costs or conveyancing charges, just a single charge to reflect that apartments always come freshly redecorated and with new carpets where required.
With no long-term commitments, you can enjoy life without worrying about property prices or restrictions over property purchases. You can trust that our genuinely all-inclusive package has no hidden extra costs, and instead provides a transparent and easy to manage option.
“Sebastian O’Kelly, director of BetterRetirementHousing.com, said “Something is seriously wrong with the business model that these flats fall so drastically in value.”
Until the business model for retirement property purchase is re-evaluated, this situation may not change. Rather than worry about reselling property at a loss for you and your family, we think retirement should be about enjoying your health and well-being in a community that supports your independence and assets. Come and see what makes us different. We’ve always got the kettle on.