Why Buy When There Are Retirement Homes to Rent?
Renting Apartments in a Retirement Village Offers Flexibility in Later Life
Why Rent Retirement Apartments?
Conventional dictates that in your retirement years your accomodation options are limited to home ownership. We believe that the opportunities offered by rental properties or apartments in communal settings in your retirement years are substantial.
In recent research commissioned by the BBC and facilitated by the Elderly Accomodation Council, re-sale prices for retirement properties have found to fall by more than 50%.
51% of retirement properties built and sold between 2000 & 2010, and then sold again between 2006 & 2016, suffered a loss in value that was on average 17%.
The EAC also found that for new build retirement properties sold between 2005 and 2007, and then resold between 2012 and 2014, 80% had an average loss of in value of 25%.
The trend continues with 60% retirement properties sold between 2008 & 2010, then resold between 2015 & 2017, sold for less than the purchase price.
At this stage in any retirement financial certainty is paramount, and you’ll want to feel safe and secure in the knowledge that you are in control of your assets.
In any case many retirement properties are in effect leasehold and not freehold, meaning they differ little from rental schemes but have marked differences in their costs.
Purchase prices tend to be higher than equivalent leasehold flats and you may only be able to sell back to the developer or freeholder, at their valuation.
There are generally ‘exit’ fees from such retirement homes that can range from 5% to over 25% of either the original purchase price or the current estimated value, plus stamp duty and legal costs that equate to a significant premium for a purchase. This is money you and your family will never get back.
Most leasehold purchases also have service charges and maintenance costs – month in, month out. You didn’t pay these when you bought your family home, so why pay them on your retirement home?
In contrast the all-inclusive Rental model offers certainty, easy planning, and flexibility. There are no building repairs, gardening costs, utility bills, Council Tax, housekeeping and linen laundry, and even transport costs on days out in our minibus. There are three restaurant meals a day and refreshments throughout, plus daily entertainment.
Should circumstances change you can change apartments, perhaps you want a different outlook to your apartment, or your needs change. In the rental model there’s no sales fees, purchase costs, nor delays; you just move and start paying the new monthly rent. Property purchase doesn’t offer that.
What Do Our Hawthorns Residents Have to Say?
“I would encourage anyone considering a move to The Hawthorns to not leave it until it is too late, to be able to enjoy the community and lifestyle to the full without the worries of daily chores. Renting out my existing property has given me the flexibility and choice to try the lifestyle out and to return home at any time, but five years later I am still here!” Margarita Hayes
“The all-inclusive rental package has surpassed all our expectations, and gives freedom of choice with no worries of having to sell your retirement property. We never feel lonely as there’s always someone to talk to, and we would certainly recommend The Hawthorns, as we have never regretted moving here.” Mr and Mrs John Webber
“We like the inclusive model as it makes budgeting easier, and it’s nice to come home to a lovely three course meal after going out on a shopping trip. It’s all pleasure now, not chores, and a place to make new friends.” Mr and Mrs Brian Hennessy
The freehold ownership argument is clear, just look for clarity and the ability to change your mind at any time without cost penalty, and where there isn’t so much small print.
Welcome to our Vibrant Retirement Communities