Then there are later living developments, purpose-built to offer a sense of community and easy access to care. Owning a home in such developments, however, can come with high fees – and there’s a limited pool of buyers meaning when the time does come to sell, it tends to be a slow, expensive process.
Upscale rentals for retirees are free of some of these issues, and are gaining popularity in the UK and globally. These developments offer a maintenance-free lifestyle and the flexibility to relocate easily.
Critics say renting is “throwing money down the drain”. However, if rent were to be paid from investments made after selling a property, for example, that’s not the case. Instead, you’re trading equity for a flexible, maintenance-free lifestyle.
Downsizing to rent can also offer opportunities for strategic gifting and efficient wealth transfer. Making such decisions when you’re mentally and physically well reduces the chances of family arguments and stress later.
Let’s look into some of the advantages more closely.
Lower transaction costs
Buying property involves significant expenses, such as stamp duty and legal fees, as well as stress – an emotional cost not to be under-estimated.
Renting is a way to avoid most of these costs – while you’ll need to pay out for things like a deposit, it won’t be anywhere near the cost of stamp duty, and tenancy agreements don’t require pricey solicitors.