Retirement Living Apartments - be careful before buying

in_my_wellies

After two years I have just sold my mothers retirement apartment. Since she purchased it in 2014 the market in her area has been flooded with these sort of apartments/flats so the prices have dropped through the floor. She lost 25%, I feel very lucky that the sale went through. There are approx 30 flats in the block and 9 are for sale. By looking on agents sites and talking to estate agents this is about normal for all the retirement living flats in the area. Hers was one of the oldest purpose built and it was very nice, built 2007. Six new complexes have been built/opened since 2015/6.  All have suffered similar price reductions. 
I would be very careful to research local plans before buying.  It's not the same everywhere, she sold a similar flat about 15 miles away which has just sold with an increase of 25%
Also be aware that there is often a 1% of sale price transfer fee to the Management company, a 1% of sale price transfer fee to the landlord, over £400 fee on top of this for completion of 'management packs' and £1000 contingency fee (hope to get this back in September) This was in the T&Cs but a reminder to look carefully
Of course service fees and ground rent had to be paid when she wasn't living there at about £3000 a year. 

bouicca21

Friends have had similar experiences with retirement flats. One went under offer within weeks, another stuck for well  over a year.  And there was a fee for renting out.  The difference, as with other properties, seems to have come down to location. The one that sold easily had shops and cafes nearby and good transport links.

hazyjo

I always warn people about them. My mum's friend has recently bought one, and I have a friend talking about getting one for her parents. I've strongly advised against.

There are lots of other minuses. Some are strict about who stays over, no children, can't put things on walls, shared washing machines in utility area and not allowed one in flat, etc...

Davesnave

Being a fully qualified older person, I've learned that most schemes and offers that promise to make life for old folk easier can roughly be translated into: "We'll sell you naive old b'stards this at a hyped-up price, because you're too dopey to question our motives or research alternatives.

It probably used to be a lucrative market, but people forget, us Boomer oldies are not like the ones who were our parents. We now include people like Mick Jagger, Pete Townshend and Alice Cooper. If we've survived this long after a life of sex, drugs and rock music, we probably know a thing or two!

comeandgo

I think the next generation of oldies, of which I'm one, are well aware of the pit falls of retirement flats which is why you had such problems selling your mums.  

Flugelhorn

I suspect that sometimes they are a very good solution to finding the right place to live for an older person. MIL has one and his been great - appreciate the costs and likelihood of losses etc but it has been ideal and so much better than staying in the old house 

NeilCr

Flugelhorn said:

I suspect that sometimes they are a very good solution to finding the right place to live for an older person. MIL has one and his been great - appreciate the costs and likelihood of losses etc but it has been ideal and so much better than staying in the old house 

This

I'd have thought that, as long as the person knew what they were taking on, then they can, as stated  be a very good solution for some

As a single person with no children I wouldn't hesitate to move into one at the right time if I thought it was the best and most comfortable solution for me

Sammyd159

We didn't buy my mum a retirement apartment for that very reason, high service charges of 2 grand a year AND the 1%.
My mum bought a shared ownership retirement place instead, very low services charges but still with the 1% on sale.  I don't mind this as it's that 1% that's keeping her service charges low and giving her more money to live on.  

Nebulous2

The world is changing. Subsequent generations are looking for something different from older ones. That model is going to struggle going forward. This is an American article, but it shows some of the issues going forward. 

https://www.fxstreet.com/analysis/boomers-prefer-to-die-at-home-enormous-glut-of-senior-housing-201911122146

PM2013

You can also find retirement shared ownership properties which could also be an option. This is where you buy a share and the housing association owns the rest. There will be service charges as these properties will be leasehold. You can Google the likes of 'retirement shared ownership' or 'older people's shared ownership' for more details about these schemes.

Slinky

Necro post alert