Property & Retirement: Should You Stay, Sell or Downsize?
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 15 | The Property Perspective with Etchells & Young
For many South Africans approaching retirement, their home is one of their biggest assets - but deciding what to do with it is not always simple.
In Episode 15 of The Property Perspective on 919 FM, Harry looks at some of the choices homeowners face as they get older, from remaining in the family home to downsizing, renting out the property, moving closer to family or considering a retirement estate.
In This Episode
Harry discusses why property decisions in retirement should form part of a much broader financial and lifestyle plan rather than being made in isolation.
Harry discusses:
Why property becomes so important in retirement planning
Staying in the family home versus downsizing
Adapting an existing home for later life
Whether renting out your existing property makes sense
The hidden costs of a smaller property
Retirement estates, security and healthcare
Moving to the coast and why renting first may be wise
Why proximity to family becomes increasingly important
Watch Episode 15
The Property Perspective airs weekly on 919 FM.
Why Does Property Matter So Much in Retirement?
For many homeowners, the property they have spent years paying off represents a significant portion of their accumulated wealth.
Harry explains that this makes the decision around that property especially important as retirement approaches.
People are also living longer, which means retirement savings and other assets may need to support them for considerably longer than previous generations expected.
Property therefore becomes part of a much broader financial planning conversation.
Should You Stay or Downsize?
Downsizing may seem like the obvious move once children have left home, but it is not automatically the best choice for everyone.
Harry explains that many older homeowners remain in their freestanding family homes for longer than people might expect.
A larger home can provide flexibility for visiting children and grandchildren, live-in assistance or future alterations that make the property easier to live in as mobility changes.
The question is not simply whether the home is large, but whether it still works for the lifestyle you expect to have in the years ahead.
Could You Adapt the Home Instead?
Moving is not the only option.
Harry discusses adapting an existing property to make it more suitable for later life.
Changes to bathrooms, showers, access and living areas can sometimes allow an owner to remain comfortably in a familiar home for longer.
If the property is already paid off and well suited to the owner's broader needs, adapting it may be worth considering before automatically deciding to sell.
Look Beyond the Value of the Property
The property's market value is only part of the equation.
Harry recommends looking closely at what the home costs to run every month.
Rates and taxes, levies, maintenance, gardening, domestic staff and other ongoing expenses can become increasingly important when regular employment income falls away.
A home that was affordable during your working years may feel very different once your income structure changes.
Will the Property Still Suit You in 10 or 20 Years?
A property that works perfectly at 60 may be much harder to manage at 80.
Harry suggests thinking ahead about stairs, accessibility, property maintenance and the ability to move comfortably through the home.
Making these decisions before a health or mobility crisis occurs gives homeowners more choice and more time to plan properly.
Should You Rent Out the Family Home?
Some retirees may consider keeping their existing home as an investment and using the rental income to help fund accommodation elsewhere.
Harry cautions that rental income is not completely risk-free.
Tenants can pay late, properties can sit vacant and maintenance costs still arise.
If your retirement budget absolutely depends on receiving every month's rental on time, those risks need to be considered carefully before deciding to retain the property as a rental investment.
Smaller Does Not Always Mean Cheaper
Selling a larger home and buying a smaller property can release capital, but the replacement property needs to be assessed carefully.
A smaller home may have high levies, rates and other monthly costs.
If it is situated within a retirement community or estate, buyers should also understand the ongoing costs and whether any major expenditure or special levies may arise.
The purchase price alone does not tell you what the property will cost you over the years ahead.
Thinking of Moving to the Coast?
The idea of retiring to the coast can be very appealing, but Harry warns against allowing the emotion of the lifestyle to drive the entire decision.
A town that feels perfect during a holiday may be very different when it becomes your permanent home.
If possible, Harry suggests renting in the area first before committing to another property purchase.
This gives you time to understand the community, climate, services and everyday lifestyle before making an expensive long-term move.
Don't Overlook Healthcare and Convenience
Location becomes increasingly important as people get older.
A beautiful rural or coastal setting may seem ideal, but access to hospitals, doctors, specialists, shops and other essential services should form part of the decision.
Harry encourages retirees to think about what they may need later, not only what they need at the time they purchase the property.
What About Retirement Estates?
Retirement estates can offer security, convenience, community facilities and access to services specifically designed for older residents.
Harry discusses the growing appeal of these developments but also points out that desirable retirement accommodation can be limited and, in some cases, expensive.
Buyers therefore need to consider availability, monthly costs, facilities and the type of care they may require in future.
How Important Is Being Close to Family?
Very.
Moving far away from children and grandchildren may seem manageable while both partners are healthy and independent.
But Harry highlights the importance of family support later in retirement, particularly if health changes or one spouse passes away.
Proximity to family can become just as important as security, healthcare or the size of the property itself.
One of the Biggest Mistakes? Waiting for a Crisis
Harry repeatedly returns to one piece of advice in this episode: plan ahead.
Illness, financial pressure, loss of a spouse or reduced mobility can force a homeowner into making a property decision quickly.
It is far better to consider the options while you still have the freedom to choose where and how you want to live.
The objective is to make a move because it forms part of your plan, rather than because circumstances suddenly leave you with no alternative.
Older Homeowners Remain Important to the Property Market
During the episode, Harry refers to research showing just how significant older homeowners are within the residential property market.
He explains that many owners over 60 continue to hold freestanding homes and tend to stay in those properties longer than younger homeowners.
When retirees do sell, they are also often buying another property, meaning one lifestyle decision can result in both a sale and a subsequent purchase.
This makes retirement-driven property decisions an important part of the broader residential market.
A Key Takeaway
Property in retirement is not simply a question of whether you should sell your large house and buy something smaller.
Think about affordability, monthly running costs, healthcare, security, family, accessibility and the lifestyle you want to maintain as you get older.
The right decision today should still make sense five, ten or even twenty years from now.
Plan before circumstances make the decision for you.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Considering a Property Move for Retirement?
Whether you are thinking of selling the family home, downsizing or finding a property that better suits the next stage of your life, the decision deserves careful planning.
Speak to the Etchells & Young team for professional guidance on selling or buying property across Johannesburg's northern suburbs.
