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  • FIRST POST
    • SamsReturn
    • By SamsReturn 9th Sep 17, 9:31 AM
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    SamsReturn
    Retirement homes sell at a loss.
    • #1
    • 9th Sep 17, 9:31 AM
    Retirement homes sell at a loss. 9th Sep 17 at 9:31 AM
    I've been thinking of downsizing, and some of the properties i've casually looked at, are those retirement homes in over 55s complexes. But this puts me off a bit. According to Bbc research, more rgan half are sold at a loss, if you come to sell them.
    http://www.bbc.co.uk/news/business-41200686
    Does anyone live in one, or do you have friends that have bought one ?
Page 1
    • Arshad 00
    • By Arshad 00 9th Sep 17, 2:14 PM
    • 441 Posts
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    Arshad 00
    • #2
    • 9th Sep 17, 2:14 PM
    • #2
    • 9th Sep 17, 2:14 PM
    Mr Hillier said it was unclear why it was happening. "It's the million dollar question, really.
    "I think part of it is the new build premium - especially when it comes to retirement housing," he said.



    I "think" he might have something.
    A neighbour is moving to one in a month or so.
    • NaughtiusMaximus
    • By NaughtiusMaximus 9th Sep 17, 4:05 PM
    • 200 Posts
    • 403 Thanks
    NaughtiusMaximus
    • #3
    • 9th Sep 17, 4:05 PM
    • #3
    • 9th Sep 17, 4:05 PM
    Not surprised in the slightest, the've always struck me as massively overpriced for what you get.
    • PasturesNew
    • By PasturesNew 9th Sep 17, 4:15 PM
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    PasturesNew
    • #4
    • 9th Sep 17, 4:15 PM
    • #4
    • 9th Sep 17, 4:15 PM
    I've looked at them in the past - they don't sell well, so you end up having to pay all the monthly fees etc until 12-18 months later when you finally sell it, plus all the other costs.

    This is a major reason why older people don't rush to move into such places. Restrictive covenants on who can live there/stay, high monthly fees .... some big transfer fees, or end of license fees. It's not like a proper house where you own a leasehold or freehold ... they're often on a "license for life" so as soon as you die you have to sell it and can't rent it out, can't have family use it for when they're visiting you in the local care home/hospital etc etc

    While there are many differing schemes .... there's always a little nasty hiding somewhere in the paperwork.
    • McKneff
    • By McKneff 9th Sep 17, 4:35 PM
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    McKneff
    • #5
    • 9th Sep 17, 4:35 PM
    • #5
    • 9th Sep 17, 4:35 PM
    There was a mention of it on bbc1 this morning. In Bridlington agent had bought in a complex for about £160k and it sold for just over 70k.
    No one can make you feel inferior without your consent
    • SamsReturn
    • By SamsReturn 9th Sep 17, 4:38 PM
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    SamsReturn
    • #6
    • 9th Sep 17, 4:38 PM
    • #6
    • 9th Sep 17, 4:38 PM
    They were talking about them at lunchtime R4 Moneybox.
    They were speaking to residents in a couple who said they were nice places, but they were more or less stuck there. 'Cos they'd dropped by thousands from when they bought them.
    I have thought about downsizing and viewed some of those on the internet, but i think i'm more inclinced to find a small bungalow, if i do move at some time.
    • Arshad 00
    • By Arshad 00 9th Sep 17, 8:49 PM
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    Arshad 00
    • #7
    • 9th Sep 17, 8:49 PM
    • #7
    • 9th Sep 17, 8:49 PM
    They were talking about them at lunchtime R4 Moneybox.
    They were speaking to residents in a couple who said they were nice places, but they were more or less stuck there. 'Cos they'd dropped by thousands from when they bought them.
    I have thought about downsizing and viewed some of those on the internet, but I think I'm more inclined to find a small bungalow, if I do move at some time.
    Originally posted by SamsReturn
    Ageing population, always going to appreciate in a decent area.
    • Fruitcake
    • By Fruitcake 10th Sep 17, 8:54 AM
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    Fruitcake
    • #8
    • 10th Sep 17, 8:54 AM
    • #8
    • 10th Sep 17, 8:54 AM
    It depends who runs them.

    The one we moved my parents in to a few years ago guaranteed to buy it back at the original buying price when they no longer needed it.
    It means no gain and no loss, so I suppose there is still a loss as far as depreciation is concerned, but there is certainly no chance of negative equity, or making a massive loss. There is of course no chance of making a profit either.

    My Dad died and then my Mum had to go into a nursing home within the same complex, and the charity bought the apartment back at the original price exactly as advertised.
    I married my cousin. I had to...
    I don't have a sister.

    All my screwdrivers are cordless.
    "You're Safety Is My Primary Concern Dear" - Laks
    • onlyroz
    • By onlyroz 10th Sep 17, 10:22 AM
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    onlyroz
    • #9
    • 10th Sep 17, 10:22 AM
    • #9
    • 10th Sep 17, 10:22 AM
    Surely the answer is to not buy a new one?
    • boliston
    • By boliston 10th Sep 17, 10:35 AM
    • 2,377 Posts
    • 1,948 Thanks
    boliston
    There is always a massive mark up for the "newness" factor a bit like buying a new car - the main thing is to triple check the lease and make sure there is no subletting restriction as there is nothing worse than having an elderly relative move into care or pass away with no option to let it out as the service charges and round rent still need paying regardless of occupation.
    • Jackmydad
    • By Jackmydad 10th Sep 17, 11:36 AM
    • 471 Posts
    • 521 Thanks
    Jackmydad
    Financial considerations aside, I'm not convinced by any setup where other people have a say in how you live.
    We stayed in a beautiful modern apartment in a Norfolk seaside town a couple of years ago. Very warm weather, and the stairwell was heated at all times. Which made our top floor apartment very warm.
    A small thing maybe, but made me think about apartments generally.

    A friend lives in an ordinary apartment in a city up North, and I was surprised by the management fees he has to pay.
    • boliston
    • By boliston 10th Sep 17, 11:47 AM
    • 2,377 Posts
    • 1,948 Thanks
    boliston
    my block originally had heated stairwells and corridors but it was decided at the annual meetings that heating these parts was a complete waste of money so the heaters were removed - i remember constantly switching them all off but one silly tenant with more money than sense kept putting them back on hence their removal
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