Downsizing property Posted on 12 July 2013 - 03:21pm Last updated on 14 July 2013 - 02:23pm Print THE senior population live in a very different society today compared to that of their parents. With the average life expectancy rising steadily, their grandparenting plans are increasingly on hold as a result of the next generation settling down and starting families relatively late. At 60 and above, many seniors are discovering a new lease in life. Nowadays, with many offspring preferring to fly the coop early, parents are finding nothing but an empty nest between them and the allure of living a fuller life. These are empty nester couples. The profile of an average empty nester covers those between 60 to 70-years old and living in a three or four-bedroom double-storey home. At this point in life these days, many consider downsizing their property. Admittedly, it isn’t for everyone but many empty nesters are discovering its benefits. For one, expenses roll back, and there’s additional income from either the sale or rent of their previous home that allows them to pursue other interests, such as travel and investmewnts. A smaller home also means reduced maintenance, costs and efforts. The Right Fit Downsizing can be overwhelming for empty nesters in many ways. It can be a time of grief when nostalgic sentiments come into focus. On an emotional and material level, personal possessions accrued over the years acquire emotional relevance. Over time however, empty nester couples can find the idea of downsizing exhilarating, especially because the money accrued can help execute dreams. However, this may come as one of the most crucial times, deciding on the right type of property to downsize to, along with all the changes that come with downsizing. Getting rid of surplus belongings and settling into a one-bedroom apartment can seem like a great plan at first. But, it is important to look at the bigger picture. It helps to ponder on issues like: would we like to entertain at some point; will we be expecting guests; are we going to be travelling frequently; can we cope with the lifestyle changes etc. By asking relevant questions, one will be able to make informed decisions. The initial high that can lead to one buying a small one-bedroom apartment can prove to be a mistake down the line if the couple enjoy entertaining and socialising. Yet, it would be perfect for those who plan to travel frequently. Options, Options In matured societies in USA and Europe, property developers, architects and marketeers target empty nesters as a profitable segment. In Malaysia, this segment is still considered something new. With Malaysians still clutching onto the Asian way of life where it is common for families with two or three generations to still live under the same roof, options for empty nesters aren’t as cut and dry here. While it is common for empty nesters to move to a single-storey landed property in USA, in Malaysia unique solutions cater to both the Asian as well as modern sentiments. a. Condominiums A condominium is the most obvious choice for senior citizens. Primary reasons being easy maintenance due to the smaller space, plus safety and security. Also, most condominiums promote a self-sufficient lifestyle providing all the amenities from fitness centres to grocers and parks. On occasion that a couple goes on vacation, safety issues don’t arise. The perfect options for empty nesters include studio apartments or one or two-bedroom units. b. Mother-in-law’s unit A mother-in-law’s unit is a small apartment accessory to a primary residence that is catered for an elderly relative or couple. It is an ideal option for families that would like to stay together but desire the privacy of a small family unit. In a mother-in-law’s unit, the apartment may have a connecting door to the main house, yet have separate entrances of its own. Subang Olives Residence is one such example of a development with a self-contained studio apartment within a larger apartment. c. SOHO Living SOHO living is typically targeted to urban professionals, presenting the advantages of living space, commercial and leisure integration in one address. It enahnces the convenience for senior citizens and is another alluring option for the older generation. d. Single-storey landed property Empty nesters preferring a home with a master bedroom and a guest bedroom could go for a single-storey landed property. It is especially suitable for folks who don’t want too big a lifestyle change. e. Empty-Nesters Community By 2021, Malaysia will be home to a substantially increased aged population of 65 and over. Developments such as the upcoming Green Leaf Retirement Resort Community in Sepang, Selangor can be a good choice. It caters to the needs of retirees, addressing their physical, mental and emotional well-being. With the inevitable rise of senior citizens in the country, more developers are foreseeing a growing demand for retirement residential neighbourhoods and already have relevant plans in the pipeline. More To Consider Older folks contemplating on downsizing should also review other considerations. Facing with reducing mobility that comes with advancing years, it would be wise to buy property in self sufficient locations like Mont Kiara and Sri Hartamas. It is also wise to take note on the proximity of medical facilites like in Subang Jaya and Bandar Sunway townships, as emergencies are bound to arise. It is also good to consider the security features of the property complex and if it covers concierge services. Financial Options The probability of obtaining substantial loans decrease for empty nesters who are seeking to purchase property after the age of 60. Empty nester couples do need to review finances and ascertain the market price of their current property versus the cost of the potential purchase and required mortgage instalments. The positive pricing gaps could make the difference towards affording a more comfortable, superior lifestyle besides increasing one’s financial status and realising other wishlists. Financial solutions for the senior population may include utilising their EPF money (Employees’ Provident Fund). These may be accessed at 50, 55 and 60. Another option would be to use “Lease Options”, a contractual agreement made between seller and investor where both benefit in many ways. For more incisive information on lease options, visit leaseoptionsmadesimple.co.uk.
Posted on: Thu, 25 Jul 2013 10:09:07 +0000
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