There are numerous lifestyle benefits to downsizing from a large, free standing, full title suburban property to a smaller home such as a sectional title unit in a secure complex or a retirement estate. “Aside from the fact that a smaller property will enable you to lock-up-and-go any time of the year for any given period of time because you are no longer responsible for the upkeep and maintenance of a home with a large garden, pool and other features, you can look forward to significant monthly cost savings on rates and taxes, utility bills, insurance and security as well as maintenance and repair costs,” says Adrian Goslett, CEO of RE/MAX of Southern Africa.

However, downsizing a property for retirement is not simply a matter of selling a large property and buying a smaller one. “Your real estate investment strategy should form part of a comprehensive and well-considered retirement plan, in which the bond repayment and/or settlement, tax and financial implications of the various possible options are considered at all times,” says Goslett.

He advises prospective retirees to consider the following:

  • The number of years you intend to live in the existing property before downsizing to a smaller home

  • The lifestyle you would like to maintain once retired as this will determine the type of property you should invest in

  • Are you going to sell or rent out the existing property?

“If you intend to rent out the property you currently live in, consider how you are going to go about securing and placing tenants. That said, a reputable rental agent that can screen, place and collect monthly rentals for example, may be well worth considering for retirees who intend to travel a lot,” says Goslett.

Goslett advises sellers who have decided to start marketing their property, to first and foremost obtain relevant information about the market value of the property to gain insight into the current market situation as to ensure that a realistic asking price is set.

When selecting a retirement property, Goslett advises retirees to take aspects such as security, maintenance and easy access to amenities such as shopping centres and social entertainment and medical facilities, among others, into consideration.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us