Should you buy or rent after retirement? Here's what this expert advises
If you're lucky enough to be able to retire then you also have some big decisions to make.
Downsizing is generally a good first step, but what then?
Selling the family home to then buy or rent is a top priority. What kind of property to buy also matters.
RealNet's Gerhard Kotzé talks to John Maytham.
Listen to the interview below:
Kotzé says buying a home is a stressful decision in general.
And if you've gone through this lifecycle and have to make this decision, 'where do I go now, how do I invest my money?' and what is the safer bet to go?Gerhard Kotzé, Managing Director - RealNet
It is important to work out the details regarding location, type of house or complex, potential frail care needs and more, he says.
I think that it all depends on have you done your homework well enough to be able to purchase that last retirement home.Gerhard Kotzé, Managing Director - RealNet
He says if one has not done all this preparatory work, it is preferable to rent for at least a year, especially if moving to a different area.
Rather rent for at least a year...like if you are moving from Gauteng to the coast - just to check it out and make sure you are going to be comfortable spending your golden years in a home that you really want to be in.Gerhard Kotzé, Managing Director - RealNet
It is not an easy decision to sell the family home, Kotzé agrees.
These lock-up-and-go secure complexes are quite expensive, and especially if you have lived in a family home for a long time - to downscale is already traumatic, but then to have to pay more for a unit than you have had, is where there is quite a big mind block and resistance.Gerhard Kotzé, Managing Director - RealNet
However, he suggests one gets over those blocks and assesses one's needs.
Remember every time you move there are transfer costs involved and the cost of moving so one really needs to measure it up and make sure that you buy something you can live in and that will cater to your needs as you grow older.Gerhard Kotzé, Managing Director - RealNet
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