Options and considerations for your retirement living

Selecting the right retirement home is an important decision, as the wrong choice can impact your finances later in life.

- Devon Card

Whether downsizing to a lock-and-go freehold home, purchasing in a life rights village, or opting for a sectional title unit, each option has distinct pros and cons.

Here's what to take into account when assessing your retirement accommodation:

1. Ownership

Freehold property: Downscaling to a smaller freehold property offers full ownership, with the title deed registered in your name. This grants you complete ownership rights over the property but also places the full responsibility for maintenance, rates, and security on your shoulders. Additionally, if financing is required, you will be liable for bond registration costs, transfer duties, and conveyancing fees.

Sectional title: Purchasing a sectional title unit also grants you full ownership, with the property registered in your name through the Deeds Office. Like freehold properties, you'll be responsible for bond costs, transfer duties, and conveyancing fees. However, the day-to-day management of the complex and communal areas falls under the body corporate's jurisdiction.