As you get older, you can start to imagine what your life will be like once you hang up your working boots for good. But before you can look ahead to a life of hammocks and relaxation, you first have to decide between owning or renting your retirement home! So, is it better to own or rent in retirement? We’ve rounded up some of the major factors that you should consider.
Cons of renting in retirement
- No investment
When you use your retirement funds to rent a property, you pay for a service rather than invest in a home that could rise in value and generate money if you decide to sell.
- Potential rent increases
Your landlord can increase your rent over time, sometimes by a significant amount, so you need to consider how rising costs could affect your lifestyle.
- Tenancies lack long-term security
Because you don’t own your home, your landlord can ask you to leave when your lease ends.
- Less freedom over your space
As a tenant, you will usually need permission to make changes to your home, and you must follow rules on subletting, keeping pets and carrying out significant renovations.
Benefits of buying a retirement home
Buying a retirement home provides:
- Greater stability
- Freedom to personalise your home
- A good investment option
- Peace of mind
Greater stability
For many people, retirement is a time to slow down, relax and settle in one comfortable place for years to come. If you can afford it, owning your home offers far greater stability than renting; for example, you won’t have to worry about sudden rent increases or tenancy renewal.
At Churchill Living, you also benefit from our Home for Life plan, a bespoke purchase scheme that helps make your dream retirement home in a location you love more affordable. To find out more, contact the Churchill Living sales team.
Freedom to personalise your home as you please
Owning a retirement apartment means that you can decorate however you want! Is your home in desperate need of new wallpaper or a shiny new paint job? Without a landlord to ask for permission, you can give your home interior a new lease of life whenever you please.
A good investment option
Home ownership is a great long-term decision – and not just because it offers you more stability. Buying a retirement apartment could also be a smart investment, as you will be preserving an asset for the future and, like any property, its value may go up over time.
Peace of mind
When you buy in a retirement community, your home often includes additional features that give you extra peace of mind, whether you live alone or plan to spend time away regularly.
Every Churchill Living retirement apartment includes a 24-hour support line, so if an emergency arises, you can contact your Lodge Manager or a member of the call centre team straight away. We have also fitted each home with video door entry and an intruder alarm.
Cons of buying a retirement property
- Service charges and additional fees
Typically, if you’ve bought your home in a retirement community, you’ll need to pay additional fees to maintain communal areas, known as service charges. Our retirement apartments are also sold on a leasehold basis, which means you may also pay ground rent depending on the development you purchase at. - Conditions of residence
Retirement homes usually set age-related criteria that residents must meet. At Churchill, only people over 60, or partners of those over 60 who are themselves over 55, can live in the apartment.
- Your home may take longer to sell
Because retirement properties are available only to specific age groups, the pool of potential buyers is more limited. As a result, your home may take longer to sell if you decide to put it on the market.
Should you rent or buy your retirement home?
Deciding whether to rent or own a retirement apartment will ultimately depend on your personal circumstances and your idea of a dream retirement. While renting a retirement flat will suit someone who wants a more flexible retirement lifestyle, owning an apartment is the best option if you want long-term security and the freedoms that come with owning a home.
Explore our retirement homes for sale across the UK
Looking to own a retirement flat while saving money on bills? Churchill Living can give you a retirement lifestyle that’s easy to budget for, without any unexpected bills! Check out our property search to find out how you can get the most out of your retirement years.