what is the deal with retirement 'buys' appts

de1amo

İ am doing my long range plans which might mean down scaling to a retirement appartment from Macarthy stone or the like.
What are the charges like and the cons on these types of buys?

Tiglet

McCarthy & Stone is now Peverel.:eek:

Not sure about retirements flats in principle, but I'd definitely keep well clear of anything to do with Peverel. There are several websites set up by people fighting them.

ETA: I got that the wrong way round. Peverel and McCarthy and Stone used to be the same company/group, but Peverel still manages the blocks so the caveat still applies.

Itismehonest

I guess it's really down to what suits individuals.

The downsides for me would be:

Retirement properties by nature have restrictions on who can buy them so they come cheap but also rely on there being plenty of retirees wanting to live in them in order to be sold on.

If they form part of a complex owned by a company there is always the possibility that the company will at some point be unable to fulfil its' promises (e.g. the entire complex may not be built or be permanently available) or they may even go bust.

Richard_Webster

Buy a second hand one - they can be about half the price of brand new ones! Some old people are too easily taken in by the adverts put out by the developers and don't investigate the market properly to see what resale is like.

cattie

You need to check what the service charges are like as some can be quite high, which can make resale more difficult. Age barrier properties take longer to sell and the value never increases in line with a stand alone property.

The downsides are generally electric heating only, no gas as they think older people will blow the place up. :eek:

Rooms can be quite small and often kitchen is actually part of the living room.

As women tend to live longer than men, there will be a glut of older women.

Lots of restrictions, such as no pets.

Why not consider downsizing into a flat, perhaps a ground floor one, which will be suitable for all ages?

big5

The person at the top of our chain was buying a retirement flat from McCarthy and Stone. There were a few hold ups in the chain and the developers started using bullying tactics, threatening to put the flat back on the market unless their deadlines were met, etc. It caused an elderly person a lot of added stress at a time when they were having to give up the family home they'd lived in for many years. I don't know if that's typical behaviour, but it would put me off.

property.advert

Everywhere you look in seemingly prosperous towns, such as mine, you have a glut of these properties for sale and a consequent number available to rent. Were they not retirement places, their values would be 50% higher at least and rents uplifted at least the same amount.

They are a poor buy new or second hand. Charges are constant and always going up from an already high base. Restrictions on who can live there are onerous and those who have enough money to pay the rent or to buy one can often afford better.

As an investor you are also faced with the property being devalued through the actions of old people and their failing bodies.

Whichever way you slice and dice it, there is little positive to say about them from any angle, unless the price is so cheap that it sells itself.

namecheck

People can be very happy in a retirement flat. It depends on the person, the development and its manager, the area, and what the purchaser wants out of life.

The OP does not say what age he/she would be if he/she bought one. There are younger people who want to spend six months of the year abroad (no security/maintenance worries while they are away), and older people who want companionship, security and no maintenance to do.

Many buyers think that the service charge they pay in the first year will not/should not change (much), which is unrealistic as all living costs are increasing all the time.

There are some huge developments with several lifts and staircases - ideal if you want to keep a low profile! Or smaller ones with more of a community feel.

However, the age restrictions do have to be enforced. If, say, a 62 year old male purchaser decides to marry a MUCH younger bride, and they then have a baby, they would have to move- this has happened!

At many developments you are able to take your existing pet (though not acquire one later on).

Kynthia

My nan bought a retirement flat as she hadn't been able to leave her house without assistance for a couple of years. The cleaning and the garden were now beyond her abilities. Also she needed a stair lift to get upstairs to her bathroom and bedroom and was at the point of needing to change to an accessible bath/shower.

The flat was great as it was a managable size overlooking nicely maintained communal gardens. It was much easier for us to take her out as there was a lift and step free access. A hairdresser, chiropodist and others would visit monthly so that residents could come to the lounge and use their services. The warden was there a few mornings a week and would help my nan down to the lounge for coffee mornings so that she socialised much more than when she lived alone in her house.

However after she passed away it was a nightmare to sell the flat and the family had to keep paying the horrendous service charges. It was still worth it though for the improved quality of life my nan had for her last couple of years.

property.advert

Kynthia wrote: »

... However after she passed away it was a nightmare to sell the flat and the family had to keep paying the horrendous service charges......

And there is the financial hit.

You can't even keep the things and rent them out as the returns are so poor. Service charges blow them out of the water each and every time in the rental market.