Planning for retirement is always important because many people want to live a comfortable life once they retire. Housing is usually critical for most people once they retire. If you will not be having people around your current big house, you may find it necessary and cost effective to downsize. Upon retirement, good or big-sized family houses may become an expense. Things such as taxes, upkeep costs, and utility costs can be a money-drain if they are being taken out of your retirement pot especially when you have a reduced income. Fortunately, retirement properties or retirement apartments can be a good solution. These apartments are usually properties arranged by developers within a given setting with adequate security as well as other amenities for living. If you are thinking of acquiring one of these apartments, here are some things you should know first.
Right of Residence of Legal Title
The right of residence is basically the legal basis upon which you have a right to occupy a retirement apartment. While various states may have their own laws concerning rights of residence in apartment units, most of them recognise a number of these rights. Some of the common rights of residence or legal titles recognised are leasehold titles, strata titles, licences, community titles, and company titles. Leasehold titles are usually the most common and standard forms of residence rights offered by the retirement property owners or operators. Strata, community, and company titles are usually rare because most people moving into these apartments are usually independent so they go for leasehold titles.
It is important to understand how and what you will have to pay for when thinking of moving into a retirement apartment. First, most building societies, banks, and other lenders usually won't provide any financing for these kinds of properties for the obvious reason that you may not have a regular income so repayments may be a problem. If you have enough money from your savings, you can choose to buy the property. Otherwise, these types of properties are usually offered on leasehold. Rents are usually paid to the retirement property owners or developers.
Service charges will also be required for things such as maintenance of communal areas like lifts and corridors. You may also have to pay council taxes and utility bills.
Knowing the ins and outs of retirement properties before acquiring one is essential to ensuring that your move into your retirement home is hassle free.