You worked hard to buy your home and now it's time it worked for you. Around the world, people are questioning the conventional wisdom behind owning their home after retirement and are opting to sell up and rent instead.
In Germany, 64% of homeowners now plan to rent in their later years, with the practice rising in popularity in the UK, Canada and the US too. It may seem like a big decision, especially if you plan to pass your estate on to your family, but today it makes more sense than ever. When it comes to finances, practicality, quality of life and personal freedom, renting a senior apartment offers distinct advantages.
It may seem counterintuitive, but the cost of home ownership can be higher than renting. In fact, renting works out cheaper in 98% of US cities with high populations of over-65s. This is because tax, agency fees, surveyors and solicitors can drive up costs for homeowners – even more so if you pass on a home as an inheritance.
Renting, meanwhile, comes with little administration, leaving you with a larger pension pot. Although monthly rental costs may seem higher, they don’t just cover the roof over your head, they pay for maintenance too. With predictable monthly costs, it’s much easier to budget for the long term. That leaves you free to plan retirement projects without interruptions from unexpected repair and maintenance tasks, saving you time and minimising stress.
Downsizing is often seen as a way of unlocking capital for travel and hobbies in your retirement, while preserving the security of home ownership. The reality is that it can be an awkward compromise. You’re still locked into a property, with less space, and have only some of your old home’s equity to spend on retirement. If you sell your house and opt to rent, you release your capital and you’re free to move when you wish, or to lock the door and go travelling without worrying about caring for an investment.
If the house had been earmarked as an inheritance, you could instead help your children buy today. 44% of Canadian millennials rely on parental support for property purchases, UK parents spent £6.5bn helping children onto the property ladder in 2016, while 37% of US millennials return to live with their parents to save for a deposit. By cashing out now you can ensure your children get on the property ladder, without sacrificing your lifestyle or losing money on inheritance tax.
If you're selling your pride and joy, you've already committed to a new lifestyle, so why not choose one that's comfortable, as well as practical? By opting to rent rather than buy, you can afford to look at luxury senior apartments that offer creature comforts.
Real estate developers are aware of the rise of retired renters and the changing way we view property. Consequently, the availability of luxury property with amenities, services and locations specifically tailored to the over-50s is increasing. As the competition for your custom builds, you’ll find not only that the spaces on offer improve, but you’re free to move between them as you choose.
South Africa competes with the best of them when it comes to Mother Nature’s beauty pageant. She scores top marks for her diverse offering of beautiful beaches, dramatic mountains and cliff-faces, lush forest belts, intriguing semi-deserts, and unforgettable sunsets over the African veld. Of course she boasts highlights such as the famed Table Mountain with its cloudy tablecloth, and the luscious Garden Route stretching from the Eastern to Western Cape, but any traveler to her shores will soon discover that a postcard scene awaits them at every turn.
Engel & Völkers South Africa specialises in the sale & rental of residential and commercial real estate. With almost 6000 homes for sale from Cape Town, South Coast, Johannesburg, Pretoria to Hoedspruit, Potchefstroom and Port Elizabeth - you are sure to find your dream home. Our listings include range from luxury homes, family homes and even smaller budget properties for the new homeowner.
Founded in Hamburg, Germany, in 1977, our sophisticated international brand has its roots in European heritage which forms a solid foundation of refinement and experience. Engel & Völkers is the real estate company of choice, selling the finest real estate worldwide.
Unique shop concept
Our unique signature property shops are highly visibly placed in the best locations worldwide, and designed to reflect the company's commitment to superior service and unmatched sophistication. This ensures easy access to support and optimal exposure for your property.
Our property sales advisors are trained at our internationally accredited in-house training academy. The programme covers the full spectrum of sales techniques which enables them to offer you tangible professionalism and expert advice, as well as the peace of mind in knowing that you are in the best hands.
Variety of services
Engel & Völkers Southern Africa is sure to have the home of your dreams. Whether it be a a flatlet or townhouse, house, new development, investment property, farms or smallholdings, game farms or holiday homes and even vacant land we are sure to have it. Our services include property evaluations, buying, selling, renting, letting, investing, property advice and even assisting with obtaining a bond or the legal process - we offer it all.
Advanced marketing tools
Advanced marketing tools including online marketing, visibility and traditional print for optimal property exposure. Our strategy ensures as a buyer, we already have a selection for you to choose from. And as seller, we have the buyer who will appreciate your home as much as you do.
Our dedicated client service division is at your disposal 24/7 -your one port of call for your property needs anywhere in the world. You can now spend your time on the more important things in life, while we ensure that your needs are taken care of. Our priority - your satisfaction.
In house property magazines
We pride ourselves in our exclusive in-house publications. Our international architectural and design magazine - GG, and our National Guide to Real Estate (NG) which is printed on a monthly basis and distributed throughout South-Africa, giving you access to clients nationally.
Property database system
We have access to an advanced web-based real estate database system ensuring real time exposure to all web-portals. We have been laying the foundation for many years, and continue to do so on a daily basis, ensuring that by the time you come to us, we have the data at our fingertips.
In-house bond origination
Our in-house financial services division is there to assist you in obtaining a bond and to ensure that you receive the best rates possible. We strive for the quickest turnaround time and can apply to all the financial institutions by completing one application only, saving you precious time.