Hang on to your assets

BY BONNY FOURIE bronwyn.fourie@inl.co.za

Experts advise potential retirees to look to the long-term horizon and not react to short-term market events

Q: WE ARE almost at retirement age and own properties. How do we know when it is good to sell one of them – or not?

A: Investing in growth assets has proven to be the best way to increase your wealth.

Inevitable periods of market volatility may, however, test your nerves. You might feel the urge to panic and change your asset mix when you see a sudden sharp drop in the value of your portfolio. Giving in to your emotions and switching when the market is down will merely lock in your losses and leave you with the prospect of a permanently lower income afterwards. Based on global life expectancy figures (as reported by the World Health Organisation last year), individuals who retire at 60 are likely to live another 15 years or more, which means they have time on their hands to ride out bouts of market weakness and recover any losses. The trick is to keep your eyes fixed on your long-term horizon and not react to short-term market events. – Andre Tuck, senior investment consultant at 10X Investments

Q: I am considering moving to the Western Cape for my retirement years but perhaps somewhere like the Boland region as I do not want to live near the city or in other more mainstream areas. Is this a good idea?

A: Lifestyle and affordability play a significant role when it comes to outlying areas, such as Robertson and Montagu. Here, we find an older age group looking to retire – either now, or as a leisure getaway with a view to retiring here in the future, and therefore seeking good amenities, a reputable hospital – such as the highlyrated hospital in Robertson – and affordable homes where the cost of living is lower.

“They also want to be part of a smaller community, where they can enjoy the natural surroundings, but still have access to Cape Town which is two hours away. – Annien Borg, managing director of Pam Golding Properties in the Boland and Overberg

Q: We are not yet at retirement age but are looking ahead to make sure we are as prepared as we can be. How important is it for us to still own a property at that stage of our life?

A: When one finally reaches the golden years of retirement, and is living off savings or a pension fund, owning a home that is paid off in full can be incredibly helpful. Not only does this reduce monthly expenses but it also provides an asset that could be sold if you run into financial difficulty. Planning for this in your younger years will prove invaluable for future financial security.

A professional financial planner would be useful when it comes to developing strategies to meet ever-changing lifestyles, goals and priorities.

Having a working relationship with a reliable real estate professional will also prove helpful in this regard. While a home may not be in the market at the moment, life could change in an instant. Keeping in contact with a reliable real estate professional will help you stay informed of current market trends, which will go a long way towards helping you become better prepared if and when the need to buy or sell suddenly arises. – Adrian Goslett, chief executive of Re/Max of Southern Africa

Q: What are some of the benefits of living in a retirement estate that is part of a residential estate for younger individuals and families?

A: These large-scale estates offer accommodation for young and old alike – either in freestanding homes, town houses, cottages or apartments – along with educational, medical, sports and recreational facilities that cater to the diverse needs of the elderly, working adults, families and children.

Not only are multi-generational estates ideal for young retirees wanting to prolong active, independent living in a secure environment, they also have crossgenerational appeal.

Integrated estates offer the best of both worlds for the elderly and their families. Retirees get all the benefits of living within a stand-alone retirement village but with the additional benefits of being able to live close to their children and grandchildren while enjoying access to the broad range of lifestyle and leisure benefits on offer within the estate. – Cobus Bedeker, managing director of Evergreen Property Developments

Q: What are some of the most important things to consider when choosing where to retire?

A: Where property is concerned, location always has a key role to play. Some people plan to move to the country or seaside on retirement, while others prefer to stay in the neighbourhood they know and love.

Deciding on a location, perhaps in order of first, second and third choice, is important because different areas offer different things, particularly in terms of infrastructure. The cost of property can also differ vastly from, say, a suburban area in the north of Johannesburg to a small town in the middle of the Karoo.

Retirees tend to need more medical care than younger generations, so looking at such facilities in your location of choice is an important consideration.

You also want to consider the accessibility of the location, like how quick and easy it is to reach from major centres. Is it important to you to live near an airport because you’re likely to have regular visitors from abroad? Other factors to consider around location include the weather and activities in the area like sports clubs and cultural societies. – Bruce Swain, chief executive of Leapfrog Property Group

Location is a key factor to consider when looking to retire. PICTURE: CHRISTIAN BOWEN/ UNSPLASH