Linda Your property Guardian

It’s a big decision to move into a retirement village when you are fit and healthy. However, according to Economist Tony Alexander’s most recent survey (January 2021), some homeowners are bringing their retirement plans forward, selling their property, and investing in a ‘right to occupy’ villa in a retirement village. It would appear that there is demand for the Lifestyle Retirement Villages, often situated close to a beach or proximate to a golf course, and are attracting retirees from 55 years plus. Now, I’m no expert on retirement villages, or a lawyer, but I’m experiencing many of my clients selling up at high market value (34% growth in the Hawkes Bay market between December 2019 and December 2020) and moving into a 2.5-3 bedroom property in a retirement village that for some are priced below current market inflation. How long these retirement villages will hold their prices below market inflation is anyone’s guess! According to Tony Alexander’s recent survey, the inability to so...

 You may have read that economists are predicting another year of rising house prices. I can hear you all saying, “How can that be”. As long as mortgage interest rates are low and bank fixed term interest rates are also low, why would you put money in the bank when property investment looks to be a much better option. In March, the Loan to Value ratio is changing in the hope that this will slow the market. However, despite this, many economists are still forecasting double digit growth in the housing market with a handful forecasting 5-6% growth, all this on the back of forecasted negative interest rates. So, what does this all mean for you? Many home-owners whom I work with are looking at downsizing and taking advantage of the high house prices. Downsizing of course has the expectation that you will be left with some surplus cash and so the question then begs what to do with the cash. Many of these home-owners logically consider buying an investment property, however, it’s not unt...