Care and support are vital

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

If you’re emigrating and leaving elderly parents behind, is it wise to persuade them to move to a retirement village? Experts answer these and other property queries

Guilt at leaving elderly parents behind when emigrating can be eased slightly by ensuring they are living in retirement village that offers security, maintenance, healthcare, and social activities. PICTURE: JWA/PIXABAY

Q: WE ARE selling our home and buying a new one, and there may be some overlap or delay regarding our moving out so the new buyer can move in, and then our moving in to the new property once that seller moves on. How does occupational rent work?

A: As a buyer, and irrespective of whether occupation is on registration or not, always insist on an occupational rental amount being filled in at the time of negotiating the deal. In terms of the value, you can be guided by your agent in terms of current marketrelated rents or perhaps put forward a figure you feel is fair.

Another important point in terms of this clause is who the occupational rent should be paid to. I would strongly suggest it gets paid to the conveyancing attorney to allow for any necessary pro-rata calculations and refunds to be handled by them.

As a seller, the advice is the same in terms of ensuring the rental amount is included at time of negotiating the deal. If the seller is not happy with the amount, they can always put forward an amended figure. Also it is vital that there is a clause in the agreement that states that no tenancy is created through occupation and that should the deal fall through for any reason, the purchaser will vacate the premises immediately. You do not want to give your purchaser the rights of a tenant in this instance.

Further to this, occupation must not be given to the purchasers until the bond has been granted, guarantees issued and any required deposits paid. – Ynnis Wilson, branch manager at Jawitz Properties Randburg

Q: My husband and I and our young children are possibly emigrating next year and we are worried about leaving my parents behind. They do have the option to join us overseas but they want to stay here. They are living in a small complex at the moment but we are considering talking to them about moving into a dedicated retirement village. What are some of the things we need to take into account? And is it a good idea to ask them to move?

A: As one gets older, decisions about where to live often depend on what other relatives are doing. However, emigration or “semigration” of close family members can be traumatic for those left behind, especially now when travel and movement are being restricted. All these factors mean that senior living communities have become more attractive for older people and more important in society.

Senior living communities are attractive living options for older people for many reasons. Some of the top reasons include the availability of care and support, the “hasslefree” living that arises from being part of a managed community and being able to live at a more manageable scale. However, being part of a sociable and active community is just as important.

In times when families do move around, it is important to consider choosing a living option which gives one peace of mind, as well as social contact and support. With possibly fewer family members around to assist with home maintenance and activities of daily living, the support which can be attained in a senior living community takes on greater importance. – Barry Kaganson, chief executive of Auria Senior Living

Q: I am starting a new job and will finally be paid enough to buy a starter property. However, I also need a car and can only afford one of these assets. I know in the long-term a property will be more beneficial but it is also hard to not have your own transport. How do I make the right decision, especially considering the interest rates will not be this low indefinitely?

A1: Many people choose to take on vehicle finance to afford the purchase but, as one of the most expensive forms of debt you can have, this can delay your ability to afford a home loan. It is better to invest in assets that have steady and stable growth over a medium to long term, even if these do not reflect a significant percentage growth month-on-month or year-on-year. To be honest, you don’t get much better than a home in that regard.

I would not recommend spending your hard-earned savings on something that devalues immediately as you drive it off the lot. Instead, I would take the same amount of money and use some, or even all, of it towards a home deposit to get your foot in the door for homeownership. – Adrian Goslett, regional director and chief executive of Re/Max of Southern Africa.

A2: With a prime lending rate at a current low of 7%, now is the ideal time to apply for a bond for your dream home. Buying a home is a long-term investment in an asset that can yield considerable capital growth over time. Homeownership is also an important step towards financial freedom as it offers a form of forced savings that can be used in the future to buy a better home or for other purposes.

Often the interest accrued on a car repayment is higher than for a bond repayment, although the term for a bond is usually much longer. A R700 000 bond repayment at 7% requires a monthly instalment of R5 400 over 20 years. A car payment for the same value, and also at 7% interest, is R14 000 over five years. – Carl Coetzee, chief executive of BetterBond

Q: I have thought about buying a property on auction but then I find myself feeling guilty about perhaps getting a good price on a property that has been taken away from someone else through no fault of their own. I am torn. How can I feel better about this decision?

A: The notion that all real estate auctions consist only of distressed properties is not only decades out of date but plain wrong. Bank instruction sales, even in the current economic situation, are in fact a tiny percentage of the overall business.

The main reason the real estate auction industry is now dominated by the private business sector is the speed at which auctions can translate bricks and mortar into liquidity in a transparent manner at a market-related value. From a fiduciary perspective, it also ticks all the boxes for corporate buyers and sellers. – Joff van Reenen, lead auctioneer and director of High Street Auctions