60 + property - why?

simonineaston · 2 April 2017 at 7:14PM

Hi folks, I'm 62 next birthday and sometimes I feel like it, sometimes I don't! Today I went for an 8 mile walk with a younger chum and thoroughly enjoyed it. On the way back we swung by the old chocolate factory in Keynsham, which is in the middle of being converted into a huge block of flats. (Yes, the same choccy factory Kraft bought off Cadburys, promising they wouldn't close it and no-one would lose their jobs...)
Anyway, my question is this. A lot, if not all, of the accomodation is being marketed as retirement homes.( http://thechocolatequarter.org.uk) What gives? What are the pluses for the buyer, and given that there's never ever any such thing as a free lunch, what's in it for vendor?? Why don't they market them straight-fowardly as first come, first served, or is it a simple case of the old 'uns being the only folk with enough money to buy places like these?

boliston · 2 April 2017 at 7:44PM

They normally have features that would not be of interest to younger buyers such as a warden and a communal lounge - a lot of older people like the social aspect of these schemes.

Biggles · 3 April 2017 at 9:19AM

There are always ongoing income streams with such places, too. Ground rents, management fees, care staff, there are endless opportunities, all with annual price rises.

With a freehold house, you sell it, make a profit and that's that. This is the gift that keeps on giving. So to speak.

simonineaston · 3 April 2017 at 10:34AM

Hmm, I think I get it. I don't think I'm quite ready to literally buy in to that sort of arrangement yet! I can see how it would work for some more community-minded folk, though. I put this very notion to a chum y'day, when we went past the show-home and he said, "Whad'ya mean you don't want to live in a community - what do you think you live in now? Everyone lives in some sort of community or other..." He has a point.

p00hsticks · 3 April 2017 at 12:49PM

From what I've seen, the ones round us are designed with the idea of having many facilities on tap, so you can live as independently (or not) as you wish.

So the individual homes have kitchens etc, but there is also a restaurant on site where you can go and eat if you wish, and communal sitting areas. And there are also facilities like hairdressers, library room, shop, gym etc.

As Biggles says, the service charges etc must be pretty high ....

PasturesNew · 3 April 2017 at 1:03PM

A quick look shows they're for wealthier people in the main.

The Community Fee: £5,404pa for one person and £6,227pa for two people.

£100/week isn't a bad price when you compare it to other alternatives and the costs. e.g. visiting a local Age UK Day Centre and having a lunch used to cost my mum £20/day... and she had to wait to be collected, then brought back - there there'd be 24/7 people to mingle with and chat to without having to "get dressed up for the weather and turn out into the cold" to do it.

There are savings to be made if there are facilities on site, such as the hairdresser - no taxi cost to get to a hairdresser/back like in "the real world".

For those who would be doing these things and can benefit from having it all on site, it's a great choice they can make.

For many it's either unaffordable, or appears so.

Couples get it half price really.

Single: £104/week
Couple each: £60/week each.

For those living entirely alone, it's an easy way of having people around in a safe environment, where you can do what you like/when you like, but know you have all this stuff, just on site....and you don't feel so "alone" at 3am when the wind's howling and the rain's bashing and it sounds like there are prowlers outside ... or the doorbell rings and there are two big men shoving IDs in your face...

boliston · 3 April 2017 at 1:24PM

there is normally either regular "sheltered" accommodation with a £170 per month service charge or "close care" schemes at about £500+ per month which include cleaning, meals and a lot more - they are quite different and suit people with differing abilities to live independantly

Robin9 · 3 April 2017 at 3:07PM

I qualify as 60+ and will look at this type of accommodation. There's a development nearby.

I don't want to fall into the trap that my 96 yo MIL has done - determined to live in her own unsuitable home and worried about doing the garden, repairing the roof and spending a lot of time alone.
Lessons to be learnt from my parents as well buying when retired and having a house without a downstairs bathroom - my father spent his last years living downstairs with a commode.

My wife and I jest about the future but agree we need to take stock when I reach 70.

The problem we face is - when do we make that move ? I want to make that choice and not have someone make it for me.

Farway · 3 April 2017 at 3:35PM

The reasons given By Robin are the same ones given by friends of mine, garden too big, stairs awkward, no handy shops or buses

Most of these retirment places around here seem to be deliberately sited near local facilites, like shops, library etc

Whilst the annaul costs may be high there are not any pockets in a shroud so may as well have a reasonable standard whilst alive

alanq · 3 April 2017 at 4:01PM

Which? feature on pros and cons of Retirement Villages

http://www.which.co.uk/elderly-care/housing-options/retirement-villages

newatc · 3 April 2017 at 8:12PM

In the latest Sunday Times, I think, there was an article on the difficulties and exhorbitant costs of selling these properties which anyone considering buying should take into account.

60 + property - why?

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