It’s never too early to plan for retirement

WHETHER you’re retiring now or only some years hence, it’s good to think about the property you’re going to settle into, because it will be major determinant of your quality of life.

Retirement property is more about comfortable retirement than investment returns, but it’s important that you consider your options carefully.

Life rights fall under the Housing Development Scheme for Retired Persons Act and they give you the right to occupy a particular home for the rest of your life. There are no legal costs involved with life rights, but the property never becomes an asset so you can’t leave it to an heir.

Sectional titles, like apartment blocks, entail registering a unit through the deeds office. Legal costs include transfer duties and conveyancing costs.

Share block lets the owners of shares in a company occupy specific sections of a building. Minimal costs are involved.

You need to consider your choices carefully, and consult a financial planner or real estate consultant about the nuances of each one.

Do some research about the developer or controlling body to ensure it’s financially strong and healthy.

Take your time in reading all the documentation before signing. If the property agreement is only being signed by either you or your partner, find out what will happen to the surviving partner in the event of death.

Finally, make sure you’re clear on the date of occupation, and whether there are additional costs on signature like administration fees and deposits. – Property Junction