Considerations when buying a retirement property

Considerations when buying a retirement property

Retirement housing is more popular than ever, and the number of options available is growing. The demand for retirement housing has increased due to a growing population and greater life expectancy. Buying a new house is always a big decision, but never more so when considering buying a retirement property. Buying a retirement property will be new for most people and there is much to learn before you start looking. In this article, we have put together a brief description of considerations when buying a retirement property.

What is a retirement property?

Simply put, retirement property is real estate that is offered to anyone who is 60 years old or older. These homes are designed for self-sufficient persons. They may also prefer to live with persons their age. Because the property is located in a designated community for ‘older persons,’ an age is assigned to it.

Why switch to a retirement property?

The reasons for buying retirement property are as varied as any other purchase. Some people simply want to downsize and use the equity in their family home to fund their retirement. Others may require extra security and assistance with home care and upkeep. Whatever the reason, we hope that our guide to buying a retirement home will help you along the way.

Considerations when buying a retirement property

There are many considerations to make, and they might be overwhelming at times. However, as with most things in life, being prepared can remove a lot of the worry.


One of the most crucial factors to consider is how close your new home is to friends and family. The closer you are to those important to you, the easier it will be to see them. As such, this should be one of your top priorities. With no work to take up your time, you’ll be spending greater periods in your new property. It’s critical to buy a home where you’d enjoy spending your time. Therefore, things such as the view you have from your property and the proximity to potentially noisy things should be taken into account.


Although one of your primary reasons for moving may be to downsize, it is important to have enough room to feel comfortable in. It might be difficult for some people to transition from a large home to a tiny one, so keep this in mind while looking for retirement homes. Also, keep in mind that moving into a retirement home often requires some serious decluttering. As a result, you may need to purchase new furniture that will be better suited to your new surroundings.


The amenities available in retirement communities vary greatly from one to the other. Some retirement communities will feature only the bare essentials, such as a communal area where people can gather and socialise. Others, on the other hand, will have spas, pools, and a variety of other amenities. The more amenities available, the higher the service charges will be, so keep this in mind.


Security should be a major consideration regardless of the sort of retirement home you choose. Things to keep an eye out for are:

  • Gated communities
  • CCTV
  • Telecom answering entry systems
  • Around the clock wardens

Financial considerations

As with any real estate purchase, there are financial considerations to take into account when buying a retirement property.

1. Service charges

Service charges, often known as maintenance fees, are an important factor to consider when purchasing a retirement home. Typical service charges will include the upkeep of the communal areas, grounds and gardens, external lighting, window cleaning, building insurance, staffing costs, on-site facilities, and security.

2. Exit fees

Many of the companies who run retirement complexes will charge an exit fee whenever the property is resold, and it’s essential to find out what this will be before you move in. Exit fees are often calculated as a percentage of the sale price.

3. Resale

Selling a retirement house is not the same as selling a regular home. Your retirement home will likely sell for significantly less than a typical home of equal size. As a result, before you commit to buying a retirement home, make sure to consider the prospective resale value.

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