Homeowners aged over 55 have been the centre of attention for some time now with potential property buyers at the other end of the spectrum struggling to climb aboard. The phenomenon of downsizing in later years when the family have flown the nest and expenses become difficult to cover has led to a new trend in the mature home owner market.
There is evidence to suggest that so-called “planned communities for active adults”, or what may otherwise have been referred to as retirement communities in the past, are springing up right across the real estate spectrum. For many who are struggling to maintain a larger home after the family have flown the nest this is the perfect opportunity to not only take on a more manageable property but also to raise funds for their future upkeep.
What are planned communities for active adults?
In simple terms these communities offer an array of units across a range of different price brackets. Even though the price of these units can change dramatically across different developments they all tend to have a number of core characteristics such as communal facilities, landscaped areas and the upkeep of the local vicinity especially in bad weather. This then allows those who acquire units in these developments their own privacy when required yet the ability to mix with others in the community.
These properties are structured and designed around specific age groups to take into account potential ailments in years to come. Simple factors such as having the bathroom on the same level as the master bedroom and, where possible, creating a one floor development so there are no difficult stairs to climb in years to come are vital.
Releasing cash from long-term property investments
Many of the more mature homeowners of today are from a period referred to as the “baby boomers” having lived through some of the most economically lucrative times in history. Many homeowners now looking towards retirement are sitting on properties worth massive multiples of what they actually paid in years gone by. Many have been caught up in the ongoing battle amongst political parties which have seen the introduction of an array of new taxes specifically targeted at those who own relatively expensive properties.
For many of those who have lived through the baby boom times they may not necessarily be cash rich but may have assets worth a significant amount of money. So unfortunately while many of the more mature homeowners choose to downsize others have no option due to the ever growing tax burden on more valuable properties.
Funding your future
There is also yet another trend around the world with individuals now obliged to plan ahead for their retirement and ensure there is sufficient finance available to maintain their chosen lifestyle. Those who depend on the state for their future income will slowly but surely see this income stream reducing especially for those who are deemed to have a certain level of financial strength themselves.
So, for many of the so-called “baby boomers” the opportunity to downsize, bank funds for the future and acquire smaller more manageable properties is actually a godsend.