REDUCE THE PAIN OF DOWNSCALING

Investing in a holiday home as a retiree

- GUS VAN DER SPEK

THE DECISION to move out of a large residence in favour of a smaller or less expensive property, also known as downscaling, is often viewed as a last resort in the face of mounting financial pressure. However, for many retirees, the decision to downscale is driven by the prospect of greater freedom.

As one gets older, the responsibilities of maintaining a large freehold home and undertaking in activities such as garden and pool maintenance, cleaning, and repairs, can become overwhelming. Still, many older individuals feel a natural emotional connection to their home. After all, they’ve seen their children grow up in it, and they’re unwilling to lose these memories entirely.

Thus, some retirees with cash to spare are opting for a ‘best of both worlds’ approach. This involves purchasing a smaller primary residence in a life rights estate or sectional title complex, and converting their former home to a secondary residence or holiday home.

The coast beckons

As to the kind of retirement properties this demographic is purchasing, Lightstone data shows that the Western Cape is the only major region where properties in estates (55%) are more popular among retirees than freehold and sectional title homes.